home / study / business / finance / questions and answers / An Analyst Has Modeled The Stock Of A Company Using ... Question: An analyst has modeled the stock of a company usin... Bookmark 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 (rSMB) is 3.2%, and the return on the HML portfolio (rHML) is 4.8%. If ai = 0, bi = 1.2, ci = 0.4, and di = 1.3, what is the stocks predicted return?

There is no risk rate listed in the text book problem.