2. (APT and factor structure, 20 points) Consider the securities with the following factor structure and their sensitivities to two factors F1 and F2 (the factors have zero means): Stock A: rA = 8+5F1.t+6F21+ CA,t Stock B: TB, = 6 + 4F1,t + 1F2,t + CB,t Risk-free: rf=1 (a) What are stock A and B's expected returns and factor loadings for F1 and F2, implied from the factor structure? forter a sensitivity to factor I = 19/5 (b) What is the security market line (SML) implied from the APT if it can price stock A and B correctly? (Hint: use stock A and B to find the value for and 2.).