Consider the single factor APT.Portfolios A and B have expected returns of 14% and 18%, respectively.The risk-free rate of return is 7%.Portfolio A has a beta of 0.7.If arbitrage opportunities are ruled out, portfolio B must have a beta of
A)0.45.
B)1.00.
C)1.10.
D)1.22.

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The Answer of Consider the single factor APT.Portfolios A and B have expected returns of 14% and 18%, respectively.The risk-free rate of return is 7%.Portfolio A has a beta of 0.7.If arbitrage opportunities are ruled out, portfolio B must have a beta of
A)0.45.
B)1.00.
C)1.10.
D)1.22.

Consider the Single Factor APT