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Consider a one-factor economy.Portfolio A has a beta of 1.0 on the factor and portfolio B has a beta of 2.0 on the factor.The expected returns on portfolios A and B are 11% and 17%, respectively.Assume that the risk-free rate is 6% and that arbitrage opportunities exist.Suppose you invested $100,000 in the risk-free asset, $100,000 in portfolio B, and sold short $200,000 of portfolio A.Your expected profit from this strategy would be
Amino Acids
Amino acids are organic compounds that combine to form proteins, serving as the building blocks of life, containing an amino group (-NH2) and a carboxyl group (-COOH).
Sucrose
A disaccharide sugar composed of glucose and fructose, commonly known as table sugar, used extensively as a sweetener.
Fructose
A simple sugar found in many plants, sweeter than glucose and often used in the food and beverage industry.
Glucose
A simple sugar that is an important source of energy and a metabolic intermediate.
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