Problem 3- Deviations from APT Model The estimated parameters of a three-factor APT model are: R-Rfree = 0.09 +0.03F1 +0.03F2 -0.04F3. Suppose that the risk free rate is 0.01 and the realized factors are F = 0.5, F2 = -0.4,and F3 = 0. Alpha b1 b2 b3 R-free 0.09 0.03 0.03 -0.04 0.01 A) If stock's realized return was R=0.1, what is the stock's deviation from the expected APT return? The deviation would be %. Round your answer to the nearest three decimal places. B) If stock's realized return was R=0.06, what is the stock's deviation from the expected APT return? The deviation would be %. Round your answer to the nearest three decimal places. C) If stock's realized return was R=0.07, what is the stock's deviation from the expected APT return? %. Round your answer to the nearest three decimal places. The deviation would be

Problem 3 - Deviations from APT Model The estimated parameters of a three-factor APT model are: RRfree=0.09+0.03F1+0.03F20.04F3. Suppose that the risk free rate is 0.01 and the realized factors are F1=0.5,F2=0.4,and F3=0. A) If stock's realized return was R=0.1, what is the stock's deviation from the expected APT return? The deviation would be \%. Round your answer to the nearest three decimal places. B) If stock's realized return was R=0.06, what is the stock's deviation from the expected APT return? The deviation would be \%. Round your answer to the nearest three decimal places. C) If stock's realized return was R=0.07, what is the stock's deviation from the expected APT return? The deviation would be \%6. Round your answer to the nearest three decimal places