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Fill in blank The following equations were estimated : 3-Factor Model: MSFT: ER - RFR = 0.966/m -0.012/SMB -0.388/HML CSX : ER-RFR = 1.042 -0.043
Fill in blank The following equations were estimated : 3-Factor Model: MSFT: ER - RFR = 0.966/m -0.012/SMB -0.388/HML CSX : ER-RFR = 1.042 -0.043 SMB -0.37%HML XRX : ER - RFR = 1.1784m +0.526 MB + 0.517AHML Historical factor risk prices are as the following: 1980-2009 AM = 7.11%, KSMB = 1.5%, KHML=5.28% Calculate the expected excess returns for MSFT using this set of factor risk premia in conjunction with the 3- factor risk model. The expected excess returns for MSFT is Pls answer in figures with symbols in 2 decimal points. Enter
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