Write down your answer on the spaces provided 1 2 3 4 5 6 Read carefully the following information and answer questions 1 and 2. The estimated factor sensitivities of Nova Inc. to Fama-French factors and the risk premia associated with those factors are given in the table below: Factor sensitivity Risk Premium (%) Market factor +0.20 4.5 Size factor (SMB) +0.50 2.7 Value factor (HML) +0.30 4.3 1. Assume that the Treasury bill rate is 4.7 percent. Based on the Fama-French model, the required return for Nova Inc. is closest to: A. 8.24% B. 5.60% C. 3.54% 2. Which of the following best describe the expected style characteristics of Nova based on the information on the table? A. Non-cyclical; Large: Value B. Non-cyclical; Small; Value C. Cyclical: Large: Growth