Three$-$Factor Model:

$BCD$:$,[E(R)-RFR]=(0\mathrm{.}969)({}_M)+(-0\mathrm{.}009)({}_{SMB})+(-0\mathrm{.}383)({}_{HML})$

$FGH$:$,[E(R)-RFR]=(1\mathrm{.}028)({}_M)+(-0\mathrm{.}054)({}_{SMB})+(0\mathrm{.}361)({}_{HML})$

$JKL$:$,[E(R)-RFR]=(1\mathrm{.}158)({}_M)+(0\mathrm{.}521)({}_{SMB})+(0\mathrm{.}510)({}_{HML})$

Four$-$Factor Model:

$BCD$:$,[E(R)-RFR]=(1\mathrm{.}027)({}_M)+(-0\mathrm{.}021)({}_{SMB})+(-0\mathrm{.}360)({}_{HML})+(0\mathrm{.}058)({}_{\text{M}\text{O}\text{M}})$

$FGH$:$,[E(R)-RFR]=(1\mathrm{.}130)({}_M)+(-0\mathrm{.}016)({}_{SMB})+(0\mathrm{.}472)({}_{HML})+(0\mathrm{.}189)({}_{\text{M}\text{O}\text{M}})$

$JKL$:$,[E(R)-RFR]=(1\mathrm{.}032)({}_M)+(0\mathrm{.}533)({}_{SMB})+(0\mathrm{.}353)({}_{HML})+(-0\mathrm{.}254)({}_{\text{M}\text{O}\text{M}})$

a$.$ You have also estimated factor risk premia over a recent $15-$year period as: ${}_M=7\mathrm{.}14$ percent, ${}_{SMB}=2\mathrm{.}06$ percent, ${}_{HML}=4\mathrm{.}51$ percent, and ${}_{\text{M}\text{O}\text{M}}=4\mathrm{.}90$

percent. Use these estimated risk premia along with two factor models estimated to calculate the expected excess returns for the three stocks. Round your

answers to two decimal places.

b$.$ Suppose that you have also estimated historical factor risk prices for two different time frames: $(1)30-$year period: percent, ${}_{SMB}=1\mathrm{.}59$

percent, and ${}_{HML}=5\mathrm{.}33$ percent