Suppose the risk-free rate is 1%, the market risk premium is 6%, and the risk premiums...

 

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Suppose the risk-free rate is 1%, the market risk premium is 6%, and the risk premiums on SMB and HML are each 2%. We have regressed the index model and FF model for Amazon as below. Estimate the expected return of Amazon using the Fama-French 3- factor model. Express your answer in percent and round it to 2 decimal places. For example, if your answer is 0.25456, then please write down 25.46 (without the percent sign). Intercept (alpha) TM-ff SMB HML R-square Residual std. dev. Single-Factor Model Regression Coefficient 1,916% 1.533 286 6.864% t-Statistic 2.065 4.865 Three-Factor Model Regression Coefficient 1.494% 1.612 -0.689 -1.133 455 6.101% t-Statistic 1.790 5.866 -2.126 -3.304 Suppose the risk-free rate is 1%, the market risk premium is 6%, and the risk premiums on SMB and HML are each 2%. We have regressed the index model and FF model for Amazon as below. Estimate the expected return of Amazon using the Fama-French 3- factor model. Express your answer in percent and round it to 2 decimal places. For example, if your answer is 0.25456, then please write down 25.46 (without the percent sign). Intercept (alpha) TM-ff SMB HML R-square Residual std. dev. Single-Factor Model Regression Coefficient 1,916% 1.533 286 6.864% t-Statistic 2.065 4.865 Three-Factor Model Regression Coefficient 1.494% 1.612 -0.689 -1.133 455 6.101% t-Statistic 1.790 5.866 -2.126 -3.304

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To estimate the expected return of Amazon using the FamaFrench threefactor model we will use the fol... View the full answer