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

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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 11%, the risk premium for small stocks (rSMB) is 3.2%, and the risk premium for value stocks (rHML) is 4.8%.

If ai = 0, bi = 0.7, ci = 1.2, and di = 0.7, then what is the stock’s required return?

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