Assume the following data for a stock: risk-free rate =5 percent beta ( market )=0.75; beta ( size )=0.5; beta ( book-to-market )=1.5; market risk premium =7 percent; size risk premium =5 percent; and book-to-marke risk premium =3.5 percent. Calculate the expected return on the stock using the Fama-French Three-factor Model. 15.0% 13.0% 21.0% 18.0% Can investors achieve a higher Sharpe ratio than the tangency portfolio by lending or borrowing at the risk-free rate? No Yes It depends on the relationship between the expected return of the tangency portfolio and the risk-free rate It depends on the risk-free rate