Question
You want to find the expected return of your firm using the Fama-French model. The risk free rate is 0.02, and the expected market return
You want to find the expected return of your firm using the Fama-French model. The risk free rate is 0.02, and the expected market return is 0.094. The HML factor and the SMB factors have expected returns of 0.033, and 0.026, respectively. You measured the beta on the market, the HML factor, and the SMB factor as 1, 0.9, and 0.4, respectively. What is the expected return for your firm?
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Mergers Acquisition And Other Restructuring Activities
Authors: Donald M. Depamphilis
6th Edition
123854857, 978-0123854858
