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The following table shows the sensitivity of four stocks to the three Fama-French factors. Assume the interest rate is 2%, the expected risk premium on
The following table shows the sensitivity of four stocks to the three Fama-French factors. Assume the interest rate is 2%, the expected risk premium on the market is 5%, the expected risk premium on the size factor is 2.8%, and the expected risk premium on the book- to-market factor is 4.6%. Market Size Book-to-market Ford 1.35 -0.18 0.75 Walmart 0.76 -0.45 -0.36 Citigroup 1.16 -0.43 0.96 Apple 1.36 -0.56 -0.61 Calculate the expected return on each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Ford Walmart Citigroup Apple Expected return % % % %
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