Consider the following simplified APT model: Factor Expected Risk Premium (%) Market 5.8 Interest rate 0.4 Yield spread 4.2 Factor Risk Exposures Market Interest Rate Yield Spread Stock (b1) (b2) (b3) P 1.6 1.4 0.4 P2 1.6 0 0.7 P3 0.3 1.1 0.4 Calculate the expected return for each of the stocks shown in the table above. Assume rf = 3.8%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Consider the following simplified APT model: Calculate the expected return for each of the stocks shown in the table above. Assume rf=3.8%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Consider the following simplified APT model: Calculate the expected return for each of the stocks shown in the table above. Assume rf=3.8%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)