Question: 4. Given a three-index model such that all indexes are orthogonal, derive the formulas for the expected return, variance, and covariance of any stock.

4. Given a three-index model such that all indexes are orthogonal, derive the formulas for the expected return, variance, and covariance of any stock.

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Given a three-index model such that all indexes are orthogonal, derive the formulas for the expected return, variance, and covariance of any stock.

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