The estimated factor sensitivities of TerraNova Energy to Fama - French factors and the risk premia associated with those factors are given in the following table:

A. Based on the Fama - French model, calculate the required return for TerraNova Energy using these estimates. Assume that the Treasury bill rate is 4.7 percent.
B. Describe the expected style characteristics of TerraNova based on its factor sensitivities.

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Factor Sensitivity Risk Premium (%) Market factor Size factor 4.5 1.20 2.7 -0.50 Value factor 4.3 -0.15