Question: SHOW ALL CALCULATIONS PLEASE 4. Calculate the expected return on a portfolio with the following characteristics in the context of arbitrage pricing theory, APT. Assume

SHOW ALL CALCULATIONS PLEASE

4. Calculate the expected return on a portfolio with the following characteristics in the context of arbitrage pricing theory, APT. Assume risk free return of 3.5 %

Factors are	Market as factor 1	Size as factor 2	Book to market as factor3
Beta of portfolio	0.75	0.10	-0.06
Risk premium for factors	6%	2%	4%

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