Question: A multiple factor regression in line with the Fame-French three factor model gave the following results for the stock of a company: Factor Coefficient Risk

A multiple factor regression in line with the Fame-French three factor model gave the following results for the stock of a company: Factor Coefficient Risk premium Market risk (b) 1.2 5.5% Small minus big (s) -0.8 3.4% High minus low (h) 0.9 4.4% The stock's CAPM beta is 0.6 and the the risk-free rate is 2%. Attempt 1/2 for 1 pts. Part 1 What is the company's cost of equity according to the CAPM? 3+ decimals Attempt 1/2 for 1 pts. Part 2 What is the company's cost of equity according to the Fama-French model? 3+ decimals

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