Problem 10-4-Factor Model Return The estimated parameters of the monthly 4-Factor model are: R-R free = 0.05 +0.75(Rm - Rfree) +0.9(SMB) 0.3(HML) +0.5(MOM) Suppose that the risk-free rate for the month is 0.2%. Beta b-SMB b-HML b-MOM R-free The return should be 0.75 Alpha 0.05 0.9 The return should be 0.3 0.5 A) If Rm - Rfree=-2.4, SMB=2.05, HML=4.8, and MOM=0.6, what should the return be? %. Round your answer to the nearest three decimal places. The return should be 0.2 B) If Rm-Rfree-3.3, SMB-1.5, HML=-0.7, and MOM=2.7, what should the return be? %. Round your answer to the nearest three decimal places. C) If Rm - Rfree -5.6, SMB=-2.3, HML=-1.5, and MOM=-0.85, what should the return be? %. Round your answer to the nearest three decimal places.

Problem 10 - 4-Factor Model Return The estimated parameters of the monthly 4-Factor model are: RRfree=0.05+0.75(RmRfree)+0.9(SMB)0.3(HML)+0.5(MOM) Suppose that the risk-free rate for the month is 0.2%. A) If Rm - Rfree=2.4,SMB=2.05,HML=4.8, and MOM=0.6, what should the return be? The return should be \%. Round your answer to the nearest three decimal places. B) If RmRfree=3.3,SMB=1.5,HML=0.7, and MOM=2.7, what should the return be? The return should be \%. Round your answer to the nearest three decimal places. C) If RmRfree=5.6,SMB=2.3,HML=1.5, and MOM=0.85, what should the return be? The return should be \%. Round your answer to the nearest three decimal places