Consider the following simplified APT model:

Factor	Expected Risk Premium (%)
Market	7.3
Interest rate	0.5
Yield spread	5.2

	Factor Risk Exposures
	Market	Interest Rate	Yield Spread
Stock	(b1)	(b2)	(b3)
P	1.9	1.8	0.4
P2	1.0	0	1.2
P3	0.3	0.7	1.0

Consider a portfolio with equal investments in stocks P, P², and P³. Assume r_f = 4%.

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 Exposures
Market (b1)
Interest rate (b2)
Yield spread (b3)

b. What is the portfolios expected return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)