Problem $7-10$ the following factor betas $($i$.$e$.,$ loadings$)$ for all three stocks with respect to each of these potential risk factors:

FACTOR LOADING

$\backslash$table$[[$Stock$,$MKT$,$MACRO$1,$MACRO$2],[$QRS$,1\mathrm{.}26,-0\mathrm{.}32,0\mathrm{.}00],[$TUV$,1\mathrm{.}01,0\mathrm{.}46,0\mathrm{.}29],[$WXY$,0\mathrm{.}93,-0\mathrm{.}09,0\mathrm{.}00]]$

a$.$ Calculate expected returns for the three stocks using just the MKT risk factor. Assume a risk$-$free rate of $5\mathrm{.}4\%.$ Round your answers to three decimal places. Expected return for stock QRS:

$\%$

Expected return for stock TUV

$\%$

Expected return for stock WXY

$\%$

b$.$ Calculate the expected returns for the three stocks using all three risk factors and the same $5\mathrm{.}4\%$ risk$-$free rate. Round your answers to three decimal places. Expected return for stock QRS $\%$

Expected return for stock TUV: $\%$

Expected return for stock WXY $\%$

c$.$ What sort of exposure might MACRO$2$ represent? MACRO$2$ might represent $-$Select$-$ factor