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How to find the cost of equity using the Fama french three factor model? I found the following using regression on excel: -b with mkt
How to find the cost of equity using the Fama french three factor model?
I found the following using regression on excel: -b with mkt -b with SMB -b with HML
Which value from above do I use for beta in the CAPM formula?
E(R) = R: + Bi(E(R) - Rp) E(Ri) = capital asset expected return R = risk-free rate of interest Bi = sensitivity E(Rm) = expected return of the market
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