BBC is exposed to the ff. risks - Foreign exchange rate Debtors' ability to pay - Interest rate movement - Household consumption level - High ratio of older personnel or management during COVID Number of labor force who were layoff during the period The level of exposure of this bank to 3 systematic factors are 0.50, 0.65, and 0.70. This is a blue-chip company which is included in the PSEi and a reasonable assessment of its sensitivity is to use the 10/31/2019 10/31/2020 data. The government ontherun bond has interest earnings of 3.5% a. With the listed risks, identify the systematic risks from unsystematic risks. b. Using the identified systematic risks calculate the expected return of BBC stock using Arbitrage Pricing Model. Extract the needed data and calculate beta. d. Calculate the CAPM rate of return of the BDO stock. If 10/31/2019 price is P97.oo and the 10/31/2020 price is P89.00. Is it undervalued, overvalued or fairly valued? D