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Fill in blank You have been assigned the task of estimating the expected returns for 3 different stocks: QRS, TUV and WXY. Your preliminary analysts
Fill in blank You have been assigned the task of estimating the expected returns for 3 different stocks: QRS, TUV and WXY. Your preliminary analysts has established the historical risk premiums associated with 3 risk factors that could potentially be included in your calculations: the excess return on a proxy for the market portfolio, MKT and 2 variables capturing general macroeconomic exposures, MACRO1 and MACRO2. These values are: AMKT = 7.5%, AMACRO1 = -0.3% and AMACRO2 = 0.6%. You have also estimated the following factor betas i.e. loadings for all 3 stocks with respect to each of these potential risk factors: FACTOR LOADING MKT MACRO1 Stock QRS MACRO2 0.00 1.24 -0.42 TUV 0.91 0.54 0.23 WXY 1.03 -0.09 0.00 Calculate the expected returns for TUV stock using all 3 risk factors and the same 4.5% risk-free rate. The expected return for TUV stock is Enter answer Pls answer in figure with symbol in 3 decimal points
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