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can I get just answers plz? Problem 8-20 APT Consider the following simplified APT model: Factor Market Interest rate Yield spread Expected Risk Premium (%)
can I get just answers plz?
Problem 8-20 APT Consider the following simplified APT model: Factor Market Interest rate Yield spread Expected Risk Premium (%) 6.5 -0.5 5.0 Stock P p2 Market (61) 1.1 1.3 0.3 Factor Risk Exposures Interest Rate Yield Spread (02) (03) -2.1 -0.3 0 0.4 0.6 1.0 p3 Consider a portfolio with equal investments in stocks P, P2, and p3 Assume ry= 4%. a. What are the factor risk exposures for the portfolio? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 3 decimal places.) Factor Risk Exposures Market (61) Interest rate (62) Yield spread (63)Step by Step Solution
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