21. The following table shows the sensitivity of four stocks to the three Fama–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 is 5.2%.

Boeing Johnson &

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