This model argues that the realized return on any stock is the sum of the market's risk-free rate and the market premium multiplied by the sensitivity of the stock to this market return. Capital Asset Pricing Model Fama-French three-factor model This model uses market risk, the company's size, and the company's book-to-market value to estimate the required return on a security. Capital Asset Pricing Model Fama-French three-factor model Julian, an analyst at Avangard Analytics (AA), models the stock of the company. Suppose that the risk-free rate rRY = 5%, the required market return rM=119, the risk premium for small stocks rSMm=3.2%, and the risk premium for value stocks rHML=4.8%. Suppose also that Julian ran the regression for Avangard Analytics's stock and estimated the following regression coefficients: a=0.00,bA=0.7,c=1.2, and dA=0.7, If Julian uses a Fama-French three-factor model, then which of the following values correctly reflects the stock's required return? 8.00% 19.64% 16.40% 11,40%