You run a two-factor index model for Atock A, where the two risk factors are MKTRF and SMB. rf 2%, E (TMKTRF) = 8%, E(TSMB) = 5%, PA,MKTRF = 0.5, PASMB = 0.1 (a) Calculate the expected return of Stock A (b) If your independent estimate of E() is 6.6%, is A overvalued or undervalued? (c) If in period t, the realized returns are TMKTRF,t = 10%, SMB,t = -5%, At = 6%, what is the idiosyncratic shock to Stock A at period t?