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27. (6pts) The stock of Arbor Pet Trees (APT) is priced based on the given systematic risk factors. Estimated sensitivities to these risk factors are given by the betas of the regression Factor Credit Risk Valuation Risk Risk-free rate Risk PremiumBeta 5% 4% 2% 1.5 0.4 a) What is the expected return on the stock of Arbor Pet Trees if the stock is fairly valued? b) If the actual return is 11%, what is the value of alpha? c) Based on parts a) and b), is APT undervalued, overvalued, or fairly valued