Question
DO NOT USE EXCEL OR CALCULATOR SHORT CUTS, FULLY BY HAND AND SHOWING STEPS IS REQUIRED. Assume the following data for a stock: Risk-free rate=
DO NOT USE EXCEL OR CALCULATOR SHORT CUTS, FULLY BY HAND AND SHOWING STEPS IS REQUIRED.
Assume the following data for a stock: Risk-free rate= 5 percent; beta (market)= 1.4; Beta (size)= 0.4; Beta (book-to-market) = -1.1; market risk premium = 7 percent; size risk premium = 3.7 percent; and book-to-market risk premium = 5.2 percent.
What is the expected return on the stock using the Fama-french three-factor model?
DO NOT USE EXCEL OR CALCULATOR SHORT CUTS, FULLY BY HAND AND SHOWING STEPS IS REQUIRED.
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Behavioral Finance And Wealth Management
Authors: Michael M. Pompian
2nd Edition
1118014324, 978-1118014325
