Problem 6 Intro An investor holds shares of Bank of Montreal. The Canadian stock market can be explained by three sources of systematic risk: short-term interest rates (1), the rate of inflation (P), and industrial production (Y). Short-term interest rates have an associated risk premium of 4%, inflation has an associated risk premium of 7% and industrial production has an associated risk premium of 1%. Each systematic factor has a mean value of zero, so that non-zero factor values represent unexpected surprises from prior expectations. The excess return for the stock can be described by the following formula: R = 0.12 + 0.81 +0.3 P + 1.1 Y + e Part 1 Attempt 3/10 for 10 pts. What is the stock's alpha according to the APT? Enter your answer as a decimal number or with the percentage sign. 3+ decimals Submit