Multiple Choice
Consider the multifactor APT.The risk premiums on the factor 1 and factor 2 portfolios are 5% and 3%,respectively.The risk-free rate of return is 10%.Stock A has an expected return of 19% and a beta on factor 1 of 0.8.Stock A has a beta on factor 2 of ________.
A) 1.33
B) 1.50
C) 1.67
D) 2.00
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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