Information for Question 7 The returns of stock i is described by the following two-factor model: ri = E [ri] +1.0 x Fi +0.5 x F2 + Ei, where the usual normalizations apply(i.e., E [FI] = E (F2] = E (Ei] = 0). The risk free rate is rg = 4%, and the risk premiums for the two factors are given by 11 5% and 12 = 6%. = Question 7 According to the APT, what is the expected return on stock i, E[r_i]? Express your answer in percentage terms (rounded off to the nearest tenth of a percent). Type your numeric answer and submit Information for Question 7 The returns of stock i is described by the following two-factor model: ri = E [ri] +1.0 x Fi +0.5 x F2 + Ei, where the usual normalizations apply(i.e., E [FI] = E (F2] = E (Ei] = 0). The risk free rate is rg = 4%, and the risk premiums for the two factors are given by 11 5% and 12 = 6%. = Question 7 According to the APT, what is the expected return on stock i, E[r_i]? Express your answer in percentage terms (rounded off to the nearest tenth of a percent). Type your numeric answer and submit