Problem 8-20 APT Consider the following simplified APT model: Factor Market Interest rate Yield spread Expected Risk Premium (%) 7.7 -0.6 5.4 Stock p2 p3 Market (61) 1.3 1.3 Factor Risk Exposures Interest Rate Yield Spread (62) (63) -1.4 -0.8 0.4 0.3 1.1 1.0 Consider a portfolio with equal investments in stocks P, P2, and p3. Assume rf= 4%. a. What are the factor risk exposures for the portfolio? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 3 decimal places.) Factor Risk Exposures Market (61) Interest rate (52) Yield spread (13) b. What is the portfolio's expected return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Portfolio's expected return %