Using the Fama-French three-factor model, an analyst assessed a stock. The risk-free rate is 5%, the required

Question:

Using the Fama-French three-factor model, an analyst assessed a stock. The risk-free rate is 5%, the required market return is 10%, the small stock risk premium (rSMB) is 3.2%, and the value stock risk premium (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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