You have estimated the Fama-French 3-factor model for Forrest's Feeble Foundation, Corp. using monthly excess returns over the past 5 years, and have the following results:

Market coefficient = 1.4 SMB coefficient = 2.05 HML coefficient = 0.77 You also have forecast returns (all EXCESS, and in %) for each of the factors, as: expected market return = 2.1 expected SMB return = 0.4 expected HML return = 1.7 and the forecast return for Forrest's Feeble Foundation, Corp. = 12.61

Given this information, what is the alpha for Forrest's Feeble Foundation, Corp.?

Select one:

a.

5.07%

b.

insufficient information to determine

c.

6.30%

d.

7.97%

e.

10.51%

f.

8.41%

g.

7.54%

Clear my choice