Please solve all parts in the photo

common risk tactors (1, 2, and 3). (Note: You may tind it useful to use a computer spreadsheet program such as Microsoft Excel to calculate your answers.) -1.16 -1.48 -3.66 -3.48 -1.63 -1.84 -6.01 -3.77 -3.28 -0.30 -5.56 -3.83 -3.42 -1.35 -1.32 -2.65 -3.09 -3.19 -8.12 -9.01 -0.19 -12.06 Period 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Portfolio A Portfolio B 1.09% 7.51 5.01 1.13 -1.89 4.29 0.73 -15.46 6.12 7.68 7.83 9.68 5.33 -3.20 5.38 2.35 -2.77 6.60 -3.41 -1.16 -1.54 5.95 2.09 7.30 -4.84 0.94 9.01 -4.33 -3.44 3.87 0.00% 6.61 6.09 0.46 -1.60 2.47 -2.53 -15.39 3.99 6.69 5.60 4.89 2.79 -0.49 2.56 7.24 0.07 3.69 -0.52 -4.07 0.05 5.22 2.27 7.01 -2.87 -1.96 5.24 -3.02 -0.68 1.86 Factor 1 0.02% 6.87 4.70 0.61 -2.92 2.81 -2.71 -16.04 5.92 7.19 5.78 5.89 3.44 -4.06 3.42 4.41 -2.40 4.63 5.72 3.26 7.78 -4.46 2.58 5.14 -6.32 -4.25 4.75 Factor 2 -1.10% 0.21 0.38 4.55 0.03 1.37 1.21 2.94 3.55 3.45 2.00 -1.21 3.17 -6.43 7.65 6.96 4.02 21.42 -16.71 -7.47 -5.83 13.37 Factor 3 -1.62% 1.85 0.26 4.27 5.77 -2.95 -3.70 -4.90 -6.21 1.67 -2.97 2.80 3.08 -4.43 0.66 7.91 8.50 5.33 -8.80 a. Using regression analysis, calculate the factor betas of each stock associated with each of the common risk factors. Which of these coefficients are Using regression analysis, calculate the factor betas of each stock associated with each of the common risk factors. Which of these coefficients are statistically significant at 5% level of significance? Fill in the table below. Use a minus sign to enter negative values, if any. Do not round intermediate calculations. Round your answers for factor betas to three decimal places and answers for t-statistics to two decimal places. a. b. C. d. Regression for Portfolio A Constant Factor 1 Factor 2 Factor 3 Regression for Portfolio B Constant Factor 1 Factor 2 Factor 3 t-statistic Significance -Select- -Select- -Select- -Select- -Select- -Select- -Select- -Select- How well does the factor model explain the variation in portfolio returns? On what basis can you make an evaluation of this nature? The factor models explain -Select- c as the -Select- c values in both regressions are -Select- Suppose you are now told that the three factors used in the models represent the risk exposures in the Fama-French characteristic-based model (i.e., market, SMB, and HML). Based on your regression results, which one of these factors is the most likely to be the market factor? Explain why. excess -Select- c is the most likely candidate for the market factor, because it has a -Select- c effect on both portfolios. Suppose it is further revealed that Factor 3 is the HML factor. Which Of the two portfolios is most likely to be a growth-oriented fund and which is a value- oriented fund? Explain why. -Select- c is the more likely candidate for the value-oriented portfolio as it has a -Select- c loading on this factor. -Select- C is the more likely candidate for the growth-oriented portfolio as it has a -select- C loading on this factor.