Question: Given the following data for a stock: risk - free rate = 3 % ; beta ( market ) = 1 . 2 ; beta

Given the following data for a stock: risk-free rate =3%; beta (market)=1.2; beta (size)=-1.1; beta (book-to-market)=0.5; market risk premium =7%; size risk premium =3.7%; and book-to-market risk premium =5.2%. Calculate the expected return on the stock using the Fama-French three-factor model.

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