Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. consider the multifactor model apt with three fact

Consider the multifactor model APT with three factors Portfolio A has a beta of 0.5...

90.2K

Verified Solution

Question

Finance

image
image
Consider the multifactor model APT with three factors Portfolio A has a beta of 0.5 on factor 1, a bets of 1.15 on factor and 15 octor Thermhet and factor 3 are 3,5% and 2%, respectively. The risk free rate of return is on. The expected return on portfolio new coperture Excel 16.5% 14.85 23.0W 13.759 Consider the multifactor model APT with three factors. Portfolio A has a bets of 0.5 on factor 1. a beta of 1.15 on factor 2, and a bets of 1.25 on factor. The risk premium on the factor 1, factor 2 and factor 3 are 3%, 54, and 2%, respectively. The risk free rate of return is 4. The expected return on portfolio no arbitragt opportunities exist. 16.5% 14,85% 23.046 0 13.75

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students