Consider the following simplified APT model: Expected Risk Premium (%) Factor Market Interest rate Yield spread 7.8 5.3 Factor Risk Exposures Market Interest Rate (02) Yield Spread Stock () p2 pa .5 1.0 .3 .5 Consider a portfolio with equal investments in stocks P2, and P3. Assume rr-3%. a. What are the factor risk exposures for the portfolio? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 3 decimal places.) Factor Risk E Market (b1 Interest rate (b2) Yield spread (b3) b. What is the portfolio's expected return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected retum