Question: Assume security markets can be modeled by a 4 factor model. Based on the table below, what is the expected return on the stock if

Assume security markets can be modeled by a 4 factor model. Based on the table below, what is the expected return on the stock if the risk free rate is 3%. (Answer in percent, 1% = 1) Factor Beta Risk Premium

MKT 1.5 3%

SML -1 4%

HML -.5 2%

MOM .5 8%

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