3.c. Based on the model below, a researcher would like to check whether he can predict (a) the performance of the portfolio of manufacturing stocks (Rmf) over the next three years, and (b) the performance of Rm f in the next month.

Advise the researcher on what types of uncertainty he ought to include in cases (a) and (b) when constructing his confidence intervals and why?

mkt	Excess return on the market*	Risk factor associated with the overall market
smb	Small minus Big	Risk factor associated with the size of stocks
hml	High minus Low	Risk factor associated with the value of stocks
rmw	Robust minus Weak	Risk factor associated with the profitability of stocks
cma	Conservative minus Aggressive	Risk factor associated with the investment style of stocks
rf	Risk free interest rate	Risk free interest rate
Rmf	Excess return on the portfolio	Risk factor associated with the portfolio

Rmfc -.1310801 + (.1053788) .9514964 mktt + 0.0280115) 0421615 smbt .1283703 hmlt + + (.0374948) (.0481862) 2736175 rmwt + (.0508654) 2598678 cmat (.0699719) n= 355 , SSR = 1226.88224, R2= 0.7933, AIC = 1459.687, BIC = 1482.919 Rmfc -.1310801 + (.1053788) .9514964 mktt + 0.0280115) 0421615 smbt .1283703 hmlt + + (.0374948) (.0481862) 2736175 rmwt + (.0508654) 2598678 cmat (.0699719) n= 355 , SSR = 1226.88224, R2= 0.7933, AIC = 1459.687, BIC = 1482.919