Consider the multifactor APT with two factors. Stock A has an expected return of 13.70%, a beta of 1.2 on factor 1, and a beta of 0.6 on factor 2. The risk premium on the factor 1 portfolio is 4.00%. The risk-free rate of return is 5.60%. What is the risk premium on factor 2 if no arbitrage opportunities exist

Afirm plans to begin production of a new small appliance. the manager must decide whether to purchase the motors for the appliance from a vendor at $10 each or to produce them in-house. either of two processes could be used for in-house production; process a would have an annual fixed cost of $200,000 and a variable cost of $7 per unit, and process b would have an annual fixed cost of $175,000 and a variable cost of $8 per unit. determine the range of annual volume for which each of the alternatives would be best. (round your first answer to the nearest whole number. include the indifference value itself in this answer.)