Question: DO NOT USE EXCEL OR CALCULATOR SHORT CUTS, FULLY BY HAND AND SHOWING STEPS IS REQUIRED. Assume the following data for a stock: Risk-free rate=

DO NOT USE EXCEL OR CALCULATOR SHORT CUTS, FULLY BY HAND AND SHOWING STEPS IS REQUIRED.

Assume the following data for a stock: Risk-free rate= 5 percent; beta (market)= 1.4; Beta (size)= 0.4; Beta (book-to-market) = -1.1; market risk premium = 7 percent; size risk premium = 3.7 percent; and book-to-market risk premium = 5.2 percent.

What is the expected return on the stock using the Fama-french three-factor model?

DO NOT USE EXCEL OR CALCULATOR SHORT CUTS, FULLY BY HAND AND SHOWING STEPS IS REQUIRED.

DO NOT USE EXCEL OR CALCULATOR SHORT CUTS, FULLY BY HAND AND

3) Assume the following data for a stock: Risk-free rate beta (book-to-market) 1.1; market risk premium - 7 percent book-to-market risk premium 5.2 percent. 5 percent, beta (market) -1.4, beta (size)-0.4 risk premium 3.7 percent; and t; size What is the expected return on the stock using the Fama-French three-factor model

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