Question: Consider the data contained in the table below, which lists 30 monthly excess returns to two different actively managed stock portfolios (A and B) and

Consider the data contained in the table below, which lists 30 monthly excess returns to two different actively managed stock portfolios (A and B) and three different common risk factors (1, 2, and 3). (Note: You may find it useful to use a computer spreadsheet program such as Microsoft Excel to calculate your answers.) Period Portfolio A Portfolio B Factor 1 Factor 2 Factor 3 1 1.01 % 0.00 % 0.02 % -0.95 % -1.61 % 2 7.63 6.65 6.83 0.32 -1.19 3 4.99 5.93 4.77 -1.40 1.93 4 1.19 0.33 0.59 0.35 0.22 5 -1.91 -1.53 -3.02 -3.71 4.30 6 4.26 2.30 2.84 -3.48 -1.47 7 -0.68 -2.51 -2.67 -4.41 -1.83 8 -15.55 -15.37 -16.11 -5.99 5.66 9 5.98 4.04 6.01 0.01 -3.74 10 7.75 6.71

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