Question: Consider the following simplified APT model: Expected Risk Fector Premius (X) Market 6.3 Interest rate -3.9 Yield spread 4.7 4554 Stock Market ( 1.1 1.3

 Consider the following simplified APT model: Expected Risk Fector Premius (X)

Consider the following simplified APT model: Expected Risk Fector Premius (X) Market 6.3 Interest rate -3.9 Yield spread 4.7 4554 Stock Market ( 1.1 1.3 8.3 Factor Risk Exposures Interest Rate Yield Speed (3) -1. -0.5 B 2.2 0.5 e2 Calculate the expected return for each of the stocks shown in the table above. Assumer-3.8% (Do not round Intermediate calculations. Enter your answers on a percent rounded to 2 decimal places.) Do Expected return Expected return P2 Expected return P3 54

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