Question: Suppose that the Fama-French 3-factor model describes security returns, that is E[ri]rf=biE[rmrf]+siE[SMB]+hiE[HML] Apple (AAPL) is in the top decile (10%) of US stocks in terms

Suppose that the Fama-French 3-factor model describes security returns, that is E[ri]rf=biE[rmrf]+siE[SMB]+hiE[HML] Apple (AAPL) is in the top decile (10\%) of US stocks in terms of market capitalization and bookto-market ratio. What would you expect for the sign of sAAPL ? Negative Positive Suppose that the Fama-French 3-factor model describes security returns, that is E[ri]rf=biE[rmrf]+siE[SMB]+hiE[HML] Apple (AAPL) is in the top decile (10\%) of US stocks in terms of market capitalization and bookto-market ratio. What would you expect for the sign of sAAPL ? Negative Positive

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