Question: You have a proprietary multifactor linear asset pricing model which you use to estimate your stock returns. The stock you are currently attempting to forecast
You have a proprietary multifactor linear asset pricing model which you use to
estimate your stock returns. The stock you are currently attempting to forecast
has factor loadings of and respectively. At the same time, these
factors have estimated risk premia annual of and Given
you believe the riskfree rate to be this year, what is your forecasted return for
the stock you are currently evaluating?
Please give your return in whole numbers, if you compute an answer of
enter the value
Answer:
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