Suppose you are considering the purchase of shares in the ABC mutual fund. As part of your investment analysis, you regress ABCs monthly returns for the past five years against the three factors specified in the Fama-French models. This procedure generates the following coefficient estimates:

Factors	Market	SMB	HML	Intercept
Coefficients	i,m = 0.8	SMB = 1.5	HML = -1.5	i = 0

(1) What types of stocks is ABC likely to be holding?

(2) What would be the expected rate of return on the ABC fund (E(Ri)), according to the Fama-French 3 factor model if Rf = 1%, E(Rm) Rf = 10%, E(RSMB) = 6%, and E(RHML) = 8%?