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; A
B) A; B
C) B; A
D) B; B

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11eaaae8_8b63_a856_a4b8_19ca20bced66_TB6474_11 < 11eaaae8_8b63_a857_a4b8_ef4a835ef667_TB6474_11 Short B; Buy A

Consider the Single Factor APT