Consider the Single Factor APT

question 61

Multiple Choice

Consider the single factor APT. Portfolio A has a beta of 1.3 and an expected return of 21%. Portfolio B has a beta of .7 and an expected return of 17%. The risk-free rate of return is 8%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio ________ and a long position in portfolio ________.

• A) A; A
• B) A; B
• C) B; A
• D) B; B

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Definitions:

Dysgraphia

A neurological disorder characterized by difficulties with writing, specifically handwriting, spelling, and organizing thoughts on paper.

Printing Properly

the act of writing letters or words using clear and correct form, ensuring legibility and adherence to accepted standards.

Spelling

The process or activity of writing or naming the letters of a word in the correct sequence.

Response To Intervention

An educational strategy aimed at early identification and support for students with learning and behavior needs, through a tiered process of interventions.