7. Calculate the expected return on a portfolio with the following characteristics in the context of arbitrage pricing theory, APT. Assume risk free return of 3.5 %. (10 points) Factors are Market as factor 1 Size as factor 2 Book to market as factor3 Beta of portfolio 0.75 0.10 -0.06 4% 2% Risk premium for factors 6% 8. Show your understanding of the role of multi-index models based on coverage in class. (10 Points)