Question: Write out the factor betas, factor equations, and expected returns of the following portfolios: ( 1 ) A portfolio of the three stocks in exercise

Write out the factor betas, factor equations, and expected returns of the following portfolios:

( 1 ) A portfolio of the three stocks in exercise 6.3 with $20,000 invested in stock A,

-$20,000 invested in stock B, and $10,000 invested in stock C.

(2) A portfolio consisting of the portfolio formed in part ( 1

) of this exerci.se and a $3,000 short position in stock C of exercise 6.3.

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