PLEASE ANSWER THIS QUESTION

ou have been assigned the task of estimating the expected returns for three different stocks: QRS, TUV, and WXY. Your preliminary analysis has established the historical risk remiums associated with three risk factors that could potentially be included in your calculations: the excess return on a proxy for the market portfolio (MKT), and two variables apturing general macroeconomic exposures (MACRO1 and MACRO2). These values are: AMKT =7.6%, Amicko1 =0.3%, and Auncas 2=0.3%. You have aiso estimated the ollowing foctor betas (L.e., loadings) for all three stocks with respect to each of these potential risk factors: a. Calculate expected returns for the three stocks using just the MkT risk factor. Assume a risk-free rate of 5.3%. Aound your answers to three decimal ploces, Expected return for stock QRS: Expected return for stock TUV: Expected return for stock Wxy: b. Calculate the expected retums for the three stocks using all three risk factors and the same 5.3. risk-free rate. Round your answers to three decimal places. Expected return for rtock QR5: Expected return for stock TUV: Expected return for stock WXY: c. What sort of exposure might MACRO2 recresent? MACRO2 might represent foctor