Suppose that a market can be described by the following three sources of systematic risk with associated risk premiums Infation facto has a 7% risk premium or its factor portfolio; Interest rate factor has a 2% nisk premium or in tactor pantolo, ana war factor has a 10% rok premium of its factor portfolio. The return on a particular well-diversified portfolio P is generated according to the follicitating equation 40% - 1.01 + 0.3R +1.5W where I, R, and W are unanticipated components in Inflation, Interest rate, and War, respectively. (6 points) 1. Find the expected rate of return of this portfolio using the APT. The T-bill rate is 7%. Is the stock overpriced or underpriced? 2. Is there any arbitrage opportunity? If so, construct one arbitrage strategy