Question 1: What are the expected returns for the three portfolios if the model is E(R_p) = 0.10 + 0.15*beta_p?

\f\fFactor Sensitivity Fund Expected Return Inflation GDP Growth A 0.02 0.5 1.0 B 0.04 1.6 0.0 C 0.03 1.0 1.1Factor Research Staff Forecast Actual Value Inflation 2.0% 2.2% GDP Growth 1.5% 1.0%Factor Sensitivities and Intercept Coefficients Factor Portfolio 1 Portfolio 2 Portfolio 3 Benchmark Factor Surprise (%) Intercept (%) 2.58 3.20 4.33 FGDP 0.75 1.00 0.24 0.50 0.8 FCAP -0.23 0.00 -1.45 -1.00 0.5 FCON 1.23 0.00 0.50 1.10 2.5 FUNEM -0.14 0.00 -0.05 -0.10 1.0 Annual Returns, Most Recent Year Return (%) 6.00 4.00 5.00 4.50Factor Sensitivities and Intercept Coefficients Factor Portfolio 1 Portfolio 2 Portfolio 3 Benchmark Factor Surprise (%) Intercept (%) 2.58 3.20 4.33 FGDP 0.75 1.00 0.24 0.50 0.8 FCAP -0.23 0.00 -1.45 -1.00 0.5 FCON 1.23 0.00 0.50 1.10 2.5 FUNEM -0.14 0.00 -0.05 -0.10 1.0 Annual Returns, Most Recent Year Return (%) 6.00 4.00 5.00 4.50Factor Sensitivities and Intercept Coefficients Factor Portfolio 1 Portfolio 2 Portfolio 3 Benchmark Factor Surprise (%) Intercept (%) 2.58 3.20 4.33 FGDP 0.75 1.00 0.24 0.50 0.8 FCAP -0.23 0.00 -1.45 -1.00 0.5 FCON 1.23 0.00 0.50 1.10 2.5 FUNEM -0.14 0.00 -0.05 -0.10 1.0 Annual Returns, Most Recent Year Return (%) 6.00 4.00 5.00 4.50