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The following table shows the sensitivity of four stocks to the three FamaFrench factors. Assume the interest rate is 5%, the expected risk premium on
The following table shows the sensitivity of four stocks to the three FamaFrench factors. Assume the interest rate is 5%, the expected risk premium on the market is 8%, the expected risk premium on the size factor is 3.7%, and the expected risk premium on the book-to-market factor is 3.9%.
Boeing | Campbell Soup | Dow Chemical | Apple | |
Market | 1.31 | .90 | 1.23 | 1.26 |
Size | .67 | .51 | .50 | .53 |
Book-to-market | .68 | .21 | .31 | .98 |
Calculate the expected return on each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Expected Return | |
Boeing | % |
Campbell Soup | % |
Dow Chemical | % |
Apple | % |
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