Factor Models The returns on Ericsson, Electrolux and Swedbank are generated as follows:

R it = α i  +  β i,SMB R SMB  +  β i,HML,RHML  +  ε it Name α(%) βHML βSMB Ericsson 3 1.2 −0.3 Electrolux 5 0.9 −0.25 Swedbank 7 −0.5 1.3 How would you determine the return on an equally weighted portfolio of all three equities?