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Consider the following simplified APT model: Factor Market Interest rate Yield spread Expected Risk Premium (2) 6.1 8.9 4.2 Stock P Market (1) 1.1 1.1

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Consider the following simplified APT model: Factor Market Interest rate Yield spread Expected Risk Premium (2) 6.1 8.9 4.2 Stock P Market (1) 1.1 1.1 8.3 Factor Risk Exposures Interest Rate Yield Spread (62) (63) -1.3 -0.5 0.2 222 8.5 p2 p3 Calculate the expected return for each of the stocks shown in the table above. Assumere 3.6%. (Do not round Interme calculations. Enter your answers as a percent rounded to 2 decimal places.) Expectedren P 194

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