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Consider the following simplified APT model: Consider a portfolio with equal investments in stocks P,P2, and P3. Assume rf=6%. a. What are the factor risk
Consider the following simplified APT model: Consider a portfolio with equal investments in stocks P,P2, and P3. Assume rf=6%. a. What are the factor risk exposures for the portfolio? b. What is the portfolio's expected return? Complete this question by entering your answers in t he tabs below. 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.) a. What are the factor risk exposures for the portfolio? b. What is the portfolio's expected return? Complete this question by entering your answers in the tabs below. 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.) b. What is the portfolio's expected return? Complete this question by entering your answers in the tabs below. What is the portfolio's expected return? (Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.)
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