Problem 5- FF 3-Factor Model Return The estimated parameters of the monthly Fama-French 3-Factor model are: R- Suppose that the risk-free rate is 0.03% for the month. Alpha 0.05 Beta 0.75 b-SMB 0.8 b-HML -0.5 R-free 0.03 A) If Rm-Rfree -9.9, SMB=-2.4, and HML=-1.7, what should the return be? The return should be B) If Rm-Rfree 8.9, SMB-2.9, and HML=0.4, what should the return be? The return should be The return should be %. Round your answer to the nearest three decimal places. R-Rfree = = 0.05 +0.75 (Rm - Rfree)+0.8(SMB) - 0.5(HML) C) If Rm-Rfree-3.8, SMB=-2, and HML=-2.4, what should the return be? %. Round your answer to the nearest three decimal places. %. Round your answer to the nearest three decimal places.

Problem 5 - FF 3-Factor Model Return The estimated parameters of the monthly Fama-French 3 -Factor model are: RRfree=0.05+0.75(R an R free )+0.8(SMB)0.5(HML) Suppose that the risk-free rate is 0.03% for the month. A) If RmRffee19.9,5MB24, and HML=-1.7, what should the return be? The return should be 06. Round your answer to the nearest three decimal places. B) If RmR free =8.9,5MB=29, and HML=0.4, what should the return be? The return should be 4. Round your answer to the nearest three decimal places. C) if RmRfree=3.8,5MB=2, and HML=2.4, what should the return be? The return should be 4. Round your answer to the nearest three decimal places