\begin{tabular}{|l|c|c|c|} & Stock A & Stock B & Stock C \\ \hline F1 & 0.7 & 0.6 & 1.4 \\ \hline F2 & 1.1 & 1.2 & 0.8 \\ \hline F3 & 1.9 & 2.5 & 2.8 \\ \hline \end{tabular} 22) Let us consider a portfolio formed by three stocks, A, B, and C. The relative weights of the stocks in portfolio are 60%,30%, and 10%, respectively. These three stocks are exposed to three factor risk, F1, F2, F3. The factor betas are the ones in the foregoing table. The risk-free rate =10%. The Factor risk premiums are 4%,2% and 5% for factors 1,2 , and 3 , respectively. Required: determine the expected return of the portfolio in agreement with APM. a. 21.61 percent b. 12.59 percent c. 18.73 percent d. 25.63 percent