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Lisa, an analyst at Graffiti General (GG), models the stock of the company. Suppose that the risk-free rate TRF = 6.5%, the required market return

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Lisa, an analyst at Graffiti General (GG), models the stock of the company. Suppose that the risk-free rate TRF = 6.5%, the required market return IM = 12.5%, the risk premium for small stocks (SMB = 3.2%, and the risk premium for value stocks thML = 4.8%. Suppose also that Lisa ran the regression for Graffiti General's stock and estimated the following regression coefficients: agg = 0.00, bGG = 0.9, CGG = 0.2, and dGG = 0.3. If Lisa uses a Fama-French three-factor model, then which of the following values correctly reflects the stock's required return? O 3.18% O 7.48% O 13.98% O 17.94%

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