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please be thorugh in the equations used 2. Factor Models Suppose a three-factor model is appropriate to describe the returns of a stock. Information about

please be thorugh in the equations used image text in transcribed
2. Factor Models Suppose a three-factor model is appropriate to describe the returns of a stock. Information about those three factors is presented in the following chart: Factor B Expected Value Actual Value GDP Inflation Interest rates .0000734 -.90 -.32 $17.034 2.80% 3.70% $17.863 2.6% 3.5% a. What is the systematic risk of the stock return? b. Suppose unexpected bad news about the firm was announced that causes the stock price, to drop by 1.1 percent. If the expected return on the stock is 11.7 percent, what is the total return on this stock

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