Suppose that three stocks (A, B, and C) and two common risk factors (1 and 2) have the following relationship: ERA = 1:11 + 0:82 ERB = 0:71 + 0:62 ERC = 0:31 + 0:42 a. If 1 = 4% and 2 = 2%, what are the prices expected next year for each of the stocks? Assume that all three stocks currently sell for $30 and will not pay a dividend in the next year. b. Suppose that you know that next year the prices for Stocks A, B, and C will actually be $31.50, $35.00, and $30.50. Create and demonstrate a riskless, arbitrage investment to take advantage of these mispriced securities. What is the profit from your investment? You may assume that you can use the proceeds from any necessary short sale.