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NEW QUESTION: 1

A. Option A
B. Option D
C. Option B
D. Option C
Answer: D

NEW QUESTION: 2

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Answer: B,C

NEW QUESTION: 3
Section B (2 Mark)
Suppose you are working with two factor portfolios, Portfolio 1 and Portfolio 2. The portfolios have expected returns of 15% and 6%, respectively. Based on this information, what would be the expected return on well-diversified portfolio A, if A has a beta of 0.80 on the first factor and 0.50 on the second factor? The risk-free rate is 3%.
A. 10.70%
B. 14.10%
C. 15.20%
D. 13.30%
Answer: B