An analyst has modeled the stock of a company using the, Financial Management

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An analyst has modeled the stock of a company using the

An analyst has modeled the stock of a company using the Fama-French three-factor model. The risk-free rate is 4%, the market return is 8%, the return on the SMB portfolio (rSMB) is 3.5%, and the return on the HML portfolio (rHML) is 5.7%. If ai = 0, bi = 1.2, ci = - 0.4, and di = 1.3, what is the stock's predicted return? Round your answer to two decimal places.

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Financial Management: An analyst has modeled the stock of a company using the

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