Suppose stock returns can be explained by the following three$-$factor model:

$R_i=R_F+{}_1{F}_1+{}_2{F}_2-{}_3{F}_3$

Assume there is no firm$-$specific risk. The information for each stock is presented here:

The risk premiums for the factors are $5\mathrm{.}3$ percent, $4\mathrm{.}1$ percent, and $5\mathrm{.}9$ percent,

respectively. You create a portfolio with $20$ percent invested in Stock A$,20$ percent

invested in Stock B$,$ and the remainder in Stock C$.$ The risk$-$free rate is $3\mathrm{.}2$ percent.

What is the expression for the return on your portfolio? $($Do not round intermediate

calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$ What is the expression for the return on your portfolio? $($Do not round intermediate

calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

What is the expected return on your portfolio? $($Do not round intermediate calculations

and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Expected returnSuppose a factor model is appropriate to describe the returns on a stock. The current

expected return on the stock is $12\mathrm{.}2$ percent. Information about those factors is

presented in the following chart:

a$.$ What is the systematic risk of the stock return? $($Do not round intermediate

calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$

b$.$ The firm announced that its market share had unexpectedly increased from $12$

percent to $15$ percent. Investors know from past experience that the stock return will

increase by $\mathrm{.}75$ percent for every $1$ percent increase in its market share. What is the

unsystematic risk of the stock? $($Do not round intermediate calculations and enter

your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$ What is the total return on this stock? $($Do not round intermediate calculations and

enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$