Question: 111410. In APT (Arbitrage Pricing Theory) multi-factors model, we assume there are two risk factors, accidental changed on inflation and productivities. We expected both factors

111410. In APT (Arbitrage Pricing Theory) multi-factors model, we assume there are two risk factors, accidental changed on inflation and productivities. We expected both factors would change 3% and 10% next year, respectively. If a portfolio has the correlation with the two factors are ₁=0.7 and ₂=0.5, respectively, suppose the portfolio actually has an excess return of 11%. Whats the portfolios alpha?

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