Exhibit 92
Use the Information Below for the Following Problem(S)
Consider

question 57

Multiple Choice

Exhibit 9.2
Use the Information Below for the Following Problem(S)
Consider the three stocks, stock X, stock Y and stock Z, that have the following factor loadings (or factor betas) .
$$\begin{array} { c c c } \text { Stack } & \text { Factor 1 Londine } & \text { Factor } 2 \text { Londing } \\\hline X & - [ .55 & 1.2 \\Y & - [ .10 & 0.85 \\Z & 0.35 & 0.5\end{array}$$
The zero-beta return (??) = 3%, and the risk premia are ?? = 10%, ?? = 8%. Assume that all three stocks are currently priced at $50.
-Refer to Exhibit 9.2.Assume that you wish to create a portfolio with no net wealth invested and the portfolio that achieves this has 50% in stock X,-100% in stock Y,and 50% in stock Z.The net arbitrage profit is

• A) $8
• B) $5
• C) $7
• D) $12
• E) $15

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Definitions:

School Facilitators

May act as guides to the various cultures found within a school setting.

Scavenger Hunt

A game in which individuals or teams are tasked with gathering a list of specific items or completing designated tasks within a limited timeframe.

Icebreaker Activity

A facilitated activity or game designed to help individuals in a group introduce themselves and foster communication and familiarity among participants.

Characteristics

Features or qualities that distinguish an individual, group, or thing, making them identifiable or unique.