You have performed a factor analysis for Company A and have derived estimates for the...
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Finance
You have performed a factor analysis for Company A and have derived estimates for the factor betas and the factor risk premiums. Calculate the expected return using the arbitrage pricing model. The risk free rate is 3.5%. Factor Factor Beta 1.5 0.35 Factor Risk Premium 1.30% 1 2 2.10% 3 2.8 1.90% 0.75% 4 1.3 A/
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