corporate finance

22.Consider the following simplified APT model: Expected Risk Premium 6.4% Factor Market Interest Rate Yield Spread -0.6% 5.1% Factor Risk Exposures Market Interest Rate Stock (11) (62) 1.0 -2.0 Yield Spread (63) Stock P -0.2 P 1.2 0 0.3 P 0.3 0.5 1.0 a) Calculate the expected return for the above stocks. Assume risk free rate is 5%. Consider a portfolio with equal investments in stocks P.P2, and P3 b) What are the factor risk exposures for the portfolio? c) What is the portfolio's expected return