You have been assigned the task of estimating the expected returns for three different stocks: QRS, TUV, and WXY. Your preliminary analysis has established the historical risk premiums associated with three risk factors that could potentially be included in your calculations: the excess return on a proxy for the market portfolio (MKT), and two variables capturing general macroeconomic exposures (MACRO1 and MACRO2). These values are: MT 8.3%, AMACRO1 -0.1%, and AMACRO2 = 0.7%. You have also estimated the following factor betas (i.e., loadings) for all three stocks with respect to each of these potential risk factors: Stock QRS TUV WXY FACTOR LOADING MKT MACRO1 MACRO2 1.21 -0.38 0.00 0.96 1.00 0.45 -0.07 0.29 0.00 a. Calculate expected returns for the three stocks using just the MKT risk factor. Assume a risk-free rate of 3.7%. Round your answers to three decimal places. Expected return for stock QRS: Expected return for stock TUV: % % Expected return for stock WXY: % b. Calculate the expected returns for the three stocks using all three risk factors and the same 3.7% risk-free rate. Round your answers to three decimal places. Expected return for stock QRS: % Expected return for stock TUV: % Expected return for stock WXY: % c. What sort of exposure might MACRO2 represent? MACRO2 might represent -Select- factor.