QUESTION 14 For the next questions use the following assumptions: the risk-free rate is 1%. The expected market premium is E(Mkt_Rf) = 2.51%, the size premium is E(SMB)=1.55%the value premium is E(HML)=3.03%, and the momentum premium is E(MOM)=-1.17%. In addition, suppose that you estimate CAPM and Carhart 4 factor regressions using retums of Apple stock (ticker: AAPL) output of these regressions is provided below. 4-Factor Model: 3 Fama-French factors (MKtRf, SMB, HML) and the momentum factor (MOM). MS Excel gives you the following regression statistics for the two regression models: Std. Dev or R2 MKT RF SMB HML MOM Error 1.75 0.12 -0.53 0.66 10.00% 31.00% 4-Factor Model CAPM 1.55 10% 24% What is APPL's expected return according to the Carhart 4-factor model? 3.70% 2.00% 04.12% 08.08% O 3.56%