onsider the following two statements and identity which model each describes: This model relies on only one explanatory factor for a security's (or portfolio's) required return and imposes a large number of restrictive and unrealistic assumptions. Capital Asset Pricing Model O Fama-French three-factor model This model argues that a security's required return is a function of the market risk premium, the company's size, and the company's book-to-market value ratio. Fama-French three-factor model Capital Asset Pricing Model John, an analyst at Grotesque Electric (GE), models the stock of the company. Suppose that the risk-free rate 59, the required market o de arch This model argues that a security's required return is a function of the market risk premium, the company's size, and the company's book-to-maricet value ratio. Fama-French three-factor model O Capital Asset Pricing Model John, an analyst at Grotesque Electric (GE), models the stock of the company. Suppose that the risk-free rate Thp = 5%, the required market return IM - 10%, the risk premium for small stocks ISM = 3.2%, and the risk premium for value stocks TM. - 4.8. Suppose also that John ran the regression for Grotesque Electric's stock and estimated the following regression coefficients ace = 0.00,- 1.2. CCR = -20.4, and der=-13. If Joho uses a Fama-French three-factor model, then which of the following values correctly reflects the stock's required retum? -60.526 -50.48% 72.925 -65.52 Grade It Now Save & Continue Continue without sa d +