Your international Portfolio management team leader is confident that for the investor's required return estimation of a two stock portfolio, the most appropriate model is Fama French 3 factor model. Your firm's analyst report shows that the expected returns on SMB, HML, and KSE-100 index are 3.25%, 4.5% and 7% respectively. The T-bill's currently giving 2% return.

The relevant regression information about the two stocks ( a , for both stock is 0, ignore e terms) are given below as follows: