Using the factor beta estimates in the table shown$$ here $($left chart$)$ and the monthly expected return estimates in Table$13\mathrm{.}1($right chart$),$ calculate the risk premium of General ElectricGeneral$$Electric

stock$($ticker:GE$)$ using the FFC factor specification.$($Annualize your result by multiplying by$12.)$ GE$\text{'}$s CAPM beta over the same time period was $1\mathrm{.}09.$ How does the risk premium you would estimate from the CAPM$$ compare?

Question #$1$: Using the FFC factor$$ specification, the monthly risk premium of General ElectricGeneral$$Electric stock is $\_\_\_\_\%($round $3$ decimal places$)$

Question #$2$: Using the FFC factor$$ specification, the annual risk premium of General Electric stock is $\_\_\_\%($round $2$ decimal places$)$

Question #$3$: The annual risk premium of General Electric stock produced by the CAPM beta is $\_\_\_\_\%.($Round to two decimal$$ places.$)$

Question #$4$: The annual risk premium produced by the CAPM beta is $\_\_\_\_($higher or lower$)$ than the annual risk premium of General Electric stock using the FFC factor specification.$$ Data table

$($Click on the following icon in order to copy its contents into a spreadsheet.$)$

Data table

$($Click on the following icon in order to copy its contents into a spreadsheet.$)$

FFC Portfolio Average Monthly Returns, $1927-2022$