Consider the single factor apt. portfolio a has a beta of .2 and an expected return of 13%. portfolio b has a beta of .4 and an expected return of 15%. the risk-free rate of return is 10%. 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; ab. a; bc. b; ad. b; explain the answer
A: 13% = 10% + 0.2F; F = 15%; B: 15% = 10% + 0.4F; F = 12.5%; therefore, short B and take a long position in A.
answer: yo mama
explanation: yo mama