2. Suppose the market can be described by the following three sources of systematic risk. Each factor in the following table has a mean value of zero (so factor values represent realized surprises relative to prior expectations), and the risk premiums associated with each source of systematic risk are given in the last column. Systematic Factor Risk Premium 6% Industrial production, IP Interest rates, INT Credit risk, CRED The excess return, R, on a particular stock is described by the following equation that relates R=6% + 1.0 IP + .5 INT + .75 CRED + e a. Calculate the equilibrium expected excess return on this stock using the APT? R-6%+10Pr5rpres75CREhreesystematictadorsthefollowingequation stock overpriced or underpriced? Why