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a stock has the following values related to the Fama-French model: market = 1.51, SMB = -0.20, and HML = 1.33. The market equity risk
a stock has the following values related to the Fama-French model: market = 1.51, SMB = -0.20, and HML = 1.33. The market equity risk premium is expected to be 5.5%, E(R)SMB = 2.5%, and E(R)HML = 4%. The risk-free rate is 4%. Using this model, what is the appropriate risk-adjusted rate of return for the stock?
A. 6.49%
B. 16.00%
C. 17.13%
D. 8.31%
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