The rest-free rate is 5 the required market return is 10


An analyst has modeled the stock of a company using the Fama-French three-factor mode. The rest-free rate is 5%, the required market return is 10%, the risk premium for small stocks (rSMB) is 3.2%, and the risk premium for value stocks (rHML) is 4.8%. If ai = 0, bi = 1.2, ci = - 0.4, and di = 1.3, what is the stock's required return?

Solution Preview :

Prepared by a verified Expert
Cost Accounting: The rest-free rate is 5 the required market return is 10
Reference No:- TGS0821363

Now Priced at $10 (50% Discount)

Recommended (91%)

Rated (4.3/5)