(b) Suppose the following three-factor model can explain stock returns: R; = R+B,F. +B2F, +B3Fz Assume there is no firm-specific risk. The information for each stock presented here: Stock A Stock B Stock C Bi 1.55 0.81 B2 0.8 1.25 B3 0.5 -0.2 1.24 0.73 -0.14 The risk premiums for the factors are 4.9 per cent, 3.8 percent, and 5.3 per cent, respectively. If yo create a portfolio with 20 per cent invested in stock A, 20 percent in invested in Stock B, and the remainder in Stock C, what is the expression for the return on your portfolio? If the risk-free rate is 3.2 percent, what is the expected return on your portfolio? (12 marks) [Total: 30 marks]