Calculate the abnormal returns of the following stock using the 3-factor model of both CAPM and Fama-French: Stock A's return is 15%, market beta 0.9, market return 10%, risk-free rate 3%, SMB 2%, HML 1% , beta 0.5 for SMB, beta 2 for HML.

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To calculate the abnormal returns of Stock A using the CAPM 3factor model we can use th... View the full answer