D Problem 1 - APT Return The realized APT model factors in a three-factor model are F1 = 0.4, F2 = 0.9, and F3 = -0.8. Suppose that the risk-free rate for the month was 0.02. F1 0.4 F2 0.9 F3 -0.8 A) If alpha=0.11, b1 = 0.9, b2 = 0.5, and b3 = 0.2, what should be the return of the portfolio? The return should be %. Round your answer to the nearest two decimal places. B) If alpha=0.13, b1 = 1.1, b2 = -0.5, and b3 = -0.9, what should be the return of the portfolio? The return should be %. Round your answer to the nearest two decimal places. C) If alpha= 0.08, b = -1.4, b2 = 0.7, and b3 = 0.3, what should be the return of the portfolio? The return should be %. Round your answer to the nearest two decimal places.

Problem 1-APT Return The realized APT model factors in a three-factor model are F1=0.4,F2=0.9, and F3=0.8. Suppose that the risk-free rate for the month was 0.02 . A) If alpha =0.11,b1=0.9,b2=0.5, and b3=0.2, what should be the return of the portfolio? The return should be Round your answer to the nearest two decimal places. B) If alpha =0.13,b1=1,1,b2=0.5, and b3=0.9, what should be the return of the portfolio? The return should be 4. Round your answer to the nearest two decimal places. Q) If alpha =0.08,b1=1.4,b2=0.7, and b3=0.3, what should be the return of the portfolio? The return should be Round your answer to the nearest two decimal places