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8. Assuming ry = .03 be the yearly risk-free rate. On the basis of the following table Factor Average monthly return (%) MSFT XOM GE

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8. Assuming ry = .03 be the yearly risk-free rate. On the basis of the following table Factor Average monthly return (%) MSFT XOM GE MKT (TM - TI) .65 1.06 0.78 1.29 SMB .23 -0.45 -0.62 -0.39 HML .39 -0.12 0.21 0.82 PRIY ear .68 -0.06 0.32 -0.22 a) Find the monthly and annual total risk premium for each stock b) What is the annual expected rate of return

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