Business, 01.04.2020 22:20 SithLeo

An analyst has modeled the stock of a company using a Fama-French three-factor model. The risk-free rate is 5%, the required market return is 10%, the risk premi-
um for small stocks (rSMB) is 3.2%, and the risk premium for value stocks (rHML) is 4.8%. If ai = 0, bi = 1.2, ci = - 0.4, and di = 1.3, what is the stock’s required return?

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An analyst has modeled the stock of a company using a Fama-French three-factor model. The risk-free...

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