Question 3 O out of 2 points a Suppose we have a factor model with two factors f1 and f2, where the volatility of the factor 1 return is 20%, the volatility of the factor 2 return is 15% and the correlation between the factor returns is 0.6. Suppose also that the volatility of the error terms el and e2 are both 7%. Given two asset returns 11 = 2 + 0.8f1 + 0.172 + e1 r2 = 1 + 0.6f1 + 0.412 + 2 what is the correlation coefficient between the asset returns 11 and 12 (to the nearest 0.01)? Question 3 O out of 2 points a Suppose we have a factor model with two factors f1 and f2, where the volatility of the factor 1 return is 20%, the volatility of the factor 2 return is 15% and the correlation between the factor returns is 0.6. Suppose also that the volatility of the error terms el and e2 are both 7%. Given two asset returns 11 = 2 + 0.8f1 + 0.172 + e1 r2 = 1 + 0.6f1 + 0.412 + 2 what is the correlation coefficient between the asset returns 11 and 12 (to the nearest 0.01)