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Which of the following statements is true

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In a single-factor APT,there are two widely diversified portfolios, L and M. Factor loadings are b L > 0 and b M > 0, both different from each other. Intercepts are a L and a M. There is a riskfree bond with riskfree rate r g. Which of the following statements is true?

Reference no: EM132758940

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