Fama-French Three-Factor Model An analyst has modeled the stock of a company using the Fama-French three-factor model. The market return is 10%, the return on the SMB port- folio (MB) is 3.2%, and the return on the HML portfolio (HM) is 4.8%. If a = 0, b = 1.2, c = -0.4, and d = 1.3, what is the stock's predicted return?

2-4 Fama-French Three-Factor Model An analyst has modeled the stock of a company using the Fama-French three-factor model. The market return is 10%, the return on the SMB portfolio (r5MB) is 3.2%, and the return on the HML portfolio (rHiMl) is 4.8%. If a1=0,bi=1.2,ci=0.4, and di=1.3, what is the stock's predicted retum