The following table shows the sensitivity of four stocks to the three Fama-French factors. Assuming that...

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The following table shows the sensitivity of four stocks to the three Fama-French factors. Assuming that the interest rate is 3%, the expected risk premium on the market is 6%, the expected risk premium on the size factor is 3.1%, and the expected risk premium on the book-to-market factor is 4.9%. Market Size Book-to-market Ford Ford Walmart Citigroup Apple 1.32 -0.15 0.84 Walmart 0.70 Expected return % % % % -0.48 -0.28 Citigroup 1.13 -0.07 0.93 Calculate the expected return on each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Apple 1.33 -0.59 -0.64 The following table shows the sensitivity of four stocks to the three Fama-French factors. Assuming that the interest rate is 3%, the expected risk premium on the market is 6%, the expected risk premium on the size factor is 3.1%, and the expected risk premium on the book-to-market factor is 4.9%. Market Size Book-to-market Ford Ford Walmart Citigroup Apple 1.32 -0.15 0.84 Walmart 0.70 Expected return % % % % -0.48 -0.28 Citigroup 1.13 -0.07 0.93 Calculate the expected return on each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Apple 1.33 -0.59 -0.64

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To calculate the expected return on each stock using the FamaFrench factors you can use the followin... View the full answer