Multifactor Models Suppose stock returns can be explained by the following three$-$factor model:

$R_i=R_F+{}_1{F}_1+{}_2{F}_2-{}_3{F}_3$

Assume there is no firm$-$specific risk. The information for each stock is presented here:

The risk premiums for the factors are $5\mathrm{.}3$ percent, $4\mathrm{.}1$ percent, and $5\mathrm{.}9$ percent, respectively. If you create

a portfolio with $20$ percent invested in Stock A$,20$ percent invested in Stock B$,$ and the remainder in

Stock $C,$ what is the expression for the return on your portfolio? If the risk$-$free rate is $3\mathrm{.}2$ percent, what

is the expected return on your portfolio?