$8\mathrm{.}7\%$

Question $14$

$2$ pts

Now consider an alternative asset pricing model $($the Fama$-$French $3-$Factor model$)$ that allows for multiple factors: the market risk factor, a size factor, and a book$-$to$-$market factor. In addition to the market premium above, the size premium is $3\mathrm{.}6\%$ and the book$-$to$-$market premium is $6\mathrm{.}1\%.$ Using this new model, you estimate the following betas for the Trident fund:

${}_{RMRF}=0\mathrm{.}92,{}_{SMB}=1\mathrm{.}20,R_{HML}=-0\mathrm{.}31$

Using the Fama$-$French $3-$factor model, what is the expected return for the Trident fund?

$7\mathrm{.}213\%$

$12\mathrm{.}488\%$

$10\mathrm{.}213\%$

$9\mathrm{.}622\%$

$8\mathrm{.}713\%$Question $162$ ptsMacBook ProSearch or type URL