Question: The following table shows the sensitivity of four stocks to the three FamaFrench factors. Estimate the expected return on each stock assuming that the interest

The following table shows the sensitivity of four stocks to the three Famaâ€“French factors. Estimate the expected return on each stock assuming that the interest rate is .2%, the expected risk premium on the market is 7%, the expected risk premium on the size factor is 3.6%, and the expected risk premium on the book-to-market factor is5.2%.

Johnson & Boeing 0.66 1.19 -0.76 JohnsonDow Chemical Microsoft Market Size Book-to-market 0.54 -0.58 0.19 1.05 -0.15 0.77 0.91 -0.04 -0.40

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