help pls

3. (25 points) Portfolio i's return is described by the following two-factor model: rrr + 1.2(Im - If) + 0.4(re- rr ) - 1%, where I'm is the return on the market index, re is the return on a real estate index and rr is the risk-free rate. (a) (15 points) Construct a pure arbitrage trade using the market index, a real estate index, a risk-free asset (such as T-bills) and Portfolio i. What are your overall weights in each asset? (b) (5 points) What is the expected return on Portfolio i if the risk-free rate is 2%, the expected return on the market is 4%, and the expected return on the real estate index is 3%? What should the expected return be if there was no arbitrage in the market? (c) (5 points) If you have $100 million invested in your arbitrage portfolio (from part a), what will be your profit at the end of the period if the return on the market is 20%, the return on the real-estate index is 10% and the risk-free rate is 2% during this period?

3. (25 points) Portfolio i's return is described by the following two-factor model: ri=rr+1.2(rmrr)+0.4(rerr)1%, where rm is the return on the market index, re is the return on a real estate index and rr is the risk-free rate. (a) (15 points) Construct a pure arbitrage trade using the market index, a real estate index, a risk-free asset (such as T-bills) and Portfolio i. What are your overall weights in each asset? (b) (5 points) What is the expected return on Portfolio i if the risk-free rate is 2%, the expected return on the market is 4%, and the expected return on the real estate index is 3% ? What should the expected return be if there was no arbitrage in the market? (c) (5 points) If you have $100 million invested in your arbitrage portfolio (from part a), what will be your profit at the end of the period if the return on the market is 20%, the return on the real-estate index is 10% and the risk-free rate is 2% during this period