Please do part b.

Consider the following simplified APT model: Factor Market Interest rate Yield spread Expected Risk Premium (1) 7.0 -0.5 Stock P p2 Market (1) 1.6 1.8 0.3 Factor Risk Exposures Interest Rate Yield Spread (52) (63) -2.6 -0.8 0 0.9 1.1 1.0 P Consider a portfolio with equal investments in stocks P, P2, and P7 Assume re = 3%. a. What are the factor risk exposures for the portfolio? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 3 decimal places.) Answer is complete and torrect. Market (61) Interest rate (b2) Yield spread (63) Factor Risk Exposures 1.233 (0.500) 0.367 b. What is the portfolio's expected return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Portfolio's expected return 10.23 X % Prou 27 HAN