Suppose returns follow a two-factor model as follows: rint = E[r,t] + Bi,1F1,t + B1,2F2,+ + i,t for assets i = A, B, and C. The betas on the two factors for the three assets are given by BA,1 = 2, BA,2 = 3, BB,1 = 3, BB,2 = 0, Bc1 = 2, Bc.2= 2. = The expected excess return on companies A and B are given by E[r,t] = 8%, E[TA,t] = 3%. = 1. Compute the factor prices 11 and 12. 2. Compute the expected excess return on company C. 3. Suppose company B has factor loadings given by BD,1 = 4 and B1,2 = 0.5. What is the expected excess return of company D? Suppose returns follow a two-factor model as follows: rint = E[r,t] + Bi,1F1,t + B1,2F2,+ + i,t for assets i = A, B, and C. The betas on the two factors for the three assets are given by BA,1 = 2, BA,2 = 3, BB,1 = 3, BB,2 = 0, Bc1 = 2, Bc.2= 2. = The expected excess return on companies A and B are given by E[r,t] = 8%, E[TA,t] = 3%. = 1. Compute the factor prices 11 and 12. 2. Compute the expected excess return on company C. 3. Suppose company B has factor loadings given by BD,1 = 4 and B1,2 = 0.5. What is the expected excess return of company D