An analyst has modeled the stock of a company using the Fama-French three-factor model. The market return

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An analyst has modeled the stock of a company using the Fama-French three-factor model. The market return is 10%, the return on the SMB portfolio

(r_SMB) is 3.2%, and the return on the HML portfolio (r_HML) is 4.8%. If a_i = 0, b_i = 1.2, c_i = 20.4, and d_i = 1.3, what is the stock’s predicted return?

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Intermediate Financial Management

ISBN: 9781337395083

13th Edition

Authors: Eugene F. Brigham, Phillip R. Daves

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Question Posted: Mar 10, 2024 12:01 AM

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An analyst has modeled the stock of a company using the Fama-French three-factor model. The market return

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Intermediate Financial Management

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