Question: Problem 7 - 1 0 three stocks with respect to each of these potential risk factors: FACTOR LOADING a . Calculate expected returns for the

Problem 7-10 three stocks with respect to each of these potential risk factors: FACTOR LOADING a. Calculate expected returns for the three stocks using just the MKT risk factor. Assume a risk-free rate of \(5.1\%\). 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 \(5.1\%\) 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 MACRO2 represent? MACRO2 might represent \(\overline{-S_{i}}\) factor.
Problem 7 - 1 0 three stocks with respect to each

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