Question: The table above provides us with the partial output from the regression results of Fama-French 3 -Factor model (Fama and French, 1993 ). In order

 The table above provides us with the partial output from the

The table above provides us with the partial output from the regression results of Fama-French 3 -Factor model (Fama and French, 1993 ). In order to obtain these results we regress the excess returns of ABC stock on the Fama-French 3 -factors using the last 60 months' return data. Beside the regression results above, we have the following expectations for the next period: Risk free rate of return =5%. Market risk premium =6%. Return on HML portfolio =5%. Return on SML portfolio is 5.25% Based on the Fama-French 3 -factor model and the all other information provided above, what is your prediction for the ABC return next period? a. 14.97% b. 17.59% c. None of the other choices. d. 15.68% e. 8.06% f. 13.06%

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