Julian, an analyst at Fantasy Analytics (FA), models the stock of a company. Suppose that the Risk-Free Rate (rRF) = 5%, the required market return (rM) = 11%, the risk premium for small stocks (rSMB) = 3.2%, and the risk premium for value stocks (rHML) = 4.8%.

Suppose also that Julian ran the regression for FA's Stock and estimated the following regression coefficients: (aFA) = 0.00 , (bFA) = 0.7 , (cFA) = 1.2 , and (dFA) = 0.7.

If Julian uses a Fama-French three factor model, then which of the following values correctly reflects the stock's required return?

A ) 8.00%

B) 16.40%

C) 11.40%

D) 19.64%