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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 3.7%, and the expected risk premium on the book-to- market factor is 5.3%. Market Size Book-to-market Ford 1.25 -0.08 0.77 Walmart 0.56 -0.46 -0.24 Citigroup 1.06 -0.01 0.86 Apple 1.26 -0.66 -0.71 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 % Ford Walmart % % Citigroup Apple %
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