Consider for mac (APT) model of security retums for particular stock Face mm 12 10 Ols 00 2. It is cuter eller a yet, find the expected rate of rerum on the martial viernes the stock as tiny prod. (Do not round intermediate calculation. Hound your own to time) 6. Due that the market expects the value for the three macro factors given in on below. but that the actual um out as an in column 2 Cote the revised expectations for the non the stock once the surprises become known (De not round Intermediate calculations. Round your answer to decimal place) EA wan es Industrial production Expected role of retum Consider the following multifactor (APT) model of security returns for a particular stock. Factor Risk Premium 69 Factor Inflation Industrial production 011 prices Factor Beta 1.4 1.0 0.6 a. If T-bills currently offer a 9% yield, find the expected rate of return on this stock if the market views the stock as fairly priced. (Do not round intermediate calculations. Round your answer to 1 decimal place.) Expected rate of return % b. Suppose that the market expects the values for the three macro factors given in column 1 below, but that the actual values turn out as given in column 2. Calculate the revised expectations for the rate of return on the stock once the surprises become known (Do not round intermediate calculations. Round your answer to 1 decimal place.) Factor Inflation Industrial production 011 prices Expected Value 89 6 4 Actual value 69 8 0 Expected rate of return