or has proposed to you the SmarterBeta fund as a good addition to arterBeta has very low fees compared to its competitors and your nomentum effect (i.e., that the return of it is a passive fund, which takes advantage of the overage continue rising for some time, whit that have been going up in the recent past, down in the recent past usually continue while the returns of firms that have been going nvest some of your money in the SmarterBe decreasing for some time). Before you agree to they are doing what the promised. For that purpeta fund, you would like to verify that indeed returns on SmarterBeta on the excess that purpose you run a regression of the excess SMB, HML, UMD. You find the fol return on the market and the following factors: u=2. Where, beta, s,h, and following coefficients: alpha =0.5, beta =1.5,s=1.2,h=0.05, HML and UMD respective u are the loadings on the excess return on the market, SMB, and u. Given that information The fund is not doing what it promised. Given the regression outcomes it looks more like a marke fund. The fund is not doing what it promised. The small and insignificant alpha indicates that it is not able to generate extra returns using the momentum strategy The fund is not doing what it promised. The s and h exposures show that it is investing in small value firms. The fund is doing what it promised. The large positive u indicates it takes advantage of the momentum strategy to generate extra returns