You are the Chief Investment Officer of Porygon Investments, a fund that specializes in factor investing. Suppose that the market can be described by the following three macro-factors, and the particular stock you cover has the following exposures to the factors (i.e. betas): Factor Beta Expected Return on the Factor Inflation 1.2 12% Industrial Production 0.5 14% Oil prices 0.39% The risk-free rate is 6%. (1) What is the equilibrium expected return on the stock according to the APT Select) ? 4% Now suppose that the market expects the values of the three factors to be 5%, 3%, and 2%, but that the actual values released are as shown in the table below: Factor Expected Value Actual Value Inflation 5% Industrial Production 3% 6% Oil prices 2% 0% (2) What is the revision amount (%) aftur the actual numbers are released to the public Select ]