Question: PLEASE ONLY FIND ( B) which is the expected return w/expected risk premium Thanks Consider the following simplified APT model: Use the following information for
PLEASE ONLY FIND (B) which is the expected return w/expected risk premium Thanks
Consider the following simplified APT model: Use the following information for stocks. Assume r_f = 4%. Consider a portfolio with equal investments in stocks P, P^2, and P^3. What are the factor risk exposures for the portfolio? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) What is the portfolio's expected return? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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