3. Consider the following questions: (1) Explain briefly bli, 10, 12 in the APT with only one factor. (2 pages limit) (8 points) (ii) Calculate the time-weighted geometric average return and time-weighted arithmetic average return on the following two investments. What can you observe from your calculations? Explain. (7 points) Year 1 2 3 4 5 6 Return Inv. A 0.25 -0.01 0.09 0.15 0.10 0.05 Return Inv. B 0.06 -0.40 0.65 0.70 0.04 -0.10 3. Consider the following questions: (1) Explain briefly bli, 10, 12 in the APT with only one factor. (2 pages limit) (8 points) (ii) Calculate the time-weighted geometric average return and time-weighted arithmetic average return on the following two investments. What can you observe from your calculations? Explain. (7 points) Year 1 2 3 4 5 6 Return Inv. A 0.25 -0.01 0.09 0.15 0.10 0.05 Return Inv. B 0.06 -0.40 0.65 0.70 0.04 -0.10