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Consider the following simplified APT model: Factor Market Interest rate Yield spread Expected Risk Premium...

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Consider the following simplified APT model: Factor Market Interest rate Yield spread Expected Risk Premium (X) 6.7 -0.3 Stock P Market (61) 0.7 1.2 0.3 Factor Risk Exposures Interest Rate Yield Spread (62) (3) -1.5 -0.6 @ 8.6 1.6 1.1 p2 p3 Calculate the expected return for each of the stocks shown in the table above. Assume ry = 4.3% (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return P Expected return P2 Expected return P3 4.70% 96 %

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