Question
Assume rf = 3.5%, E[rm rf ] = 8.5%, E[rSMB] = 4%, and E[rHML] = 6%. Googles betas are im = 1.4, i,SMB = 0.5,
Assume rf = 3.5%, E[rm rf ] = 8.5%, E[rSMB] = 4%, and E[rHML] = 6%. Googles betas are im = 1.4, i,SMB = 0.5, and i,HML = 0.3. What is the expected return of Google based on the Fama-French three-factor model?
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
