QUESTION 17 Assume a single factor describes asset returns (Ri,t = Qi trf + BiFt + Ei,t). Suppose that well-diversified portfolio X has an expected return of 11% and a of Bx = 2. Well-diversified portfolio Y has an expected return of 8% and a beta of By = 1. The factor has an average value of 4%. The risk-free rate (rf) is 3%. What are the alphas (a) of portfolios X and Y? QUESTION 18 Using the 3-factor Fama-French model, write out the linear model of re- turns as a function of the factors and any other required terms. In addition, define the three factors