Over the recent history your fund manager has earned an average return of 5% per year. The market averaged 9% per year, the risk-free rate averaged 2% per year, SMB averaged 3% per year, and HML averaged 5% per year.

The fund manager's returns produced =1,s=.5, h=-.5 in the three factor regression: r_it-r_ft=_i+_i (r_mkt-r_ft )+s_i SMB_t+h_i HML_t+_it

Assuming the Fama-French model is the right model, did your manager outperform or underperform?

What should the manager have earned if they were simply investing passively in the Fama-French factors?

Based on the factor loadings, what kind of stocks does the manager appear to be investing in?