An analyst has modeled the stock of a company using the Fama-French three-factor mode. The rest-free rate

Question:

An analyst has modeled the stock of a company using the Fama-French three-factor mode. The rest-free rate is 5%, the required market return is 10%, the risk premium for small (rSMB) is 3.2%, and the risk premium for value (rHML) is 4.8%. If ai = 0, bi = 1.2, ci = – 0.4, and di = 1.3, what is the required return?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...