Question 10 (1) Describe the arbitrage pricing theory (APT) assuming there are three are systematic risk factor (F1, F2, and F3) please clearly define the notation: a. Write down the factor model for any individual risky security. b. Write down the factor model for a well-diversified portfolio. c. Write down the three-factor Security Market Line (SML) under no- arbitrage constrain. Describe the CAPM as especial case of APT. Specifically, what is the shock or surprise to the systematic risk factor in the CAPM and what is the one-factor SML equation