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 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 riskfree rate of 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 riskfree 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 represent? MACRO might represent overlineSi factor.
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