What is the arbitrage profit

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Reference no: EM132945148

Question - Consider the following well diversified portfolios:

A: expected ROR =7% with beta=0.5,

B: expected ROR =12% with beta =0.9,

C: expected ROR =14% with beta = 1.3.

What is the arbitrage profit per $1000 notional amount in portfolio A (long or short position.) Enter a number without a dollar sign.

Reference no: EM132945148

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