Determining stock predicted return, Finance Basics

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Determining stock predicted return

An analyst has modeled the stock of a company using a Fama-French three-factor model. The risk-free rate is 3%, the market return is 11%, the return on the SMB portfolio (rSMB) is 3.9%, and the return on the HML portfolio (rHML) is 5.4%. If ai = 0, bi = 1.2, ci = - 0.4, and di = 1.3, what is the stock's predicted return?

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Finance Basics: Determining stock predicted return

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The risk-free rate is 3%, the market return is 11%, the return on the SMB portfolio (rSMB) is 3.9%, and the return on the HML portfolio (rHML) is 5.4%. If ai = 0, bi = 1.2, ci = - 0.4, and di = 1.3, what is the stock's predicted return?

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Finance Basics: Determining stock predicted return

Reference No:- TGS039592

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Recent Questions Asked Finance Basics

Q : How the fact violate the efficient markets hypothesis

Q : Impact of statue on number of workers automaker hires

Q : Consequences of tax on both consumption and production

Q : What are total fixed expenses

Q : Determining stock predicted return

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Q : What is null hypothesis and alternative hypothesis

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Determining stock predicted return

Reference No:- TGS039592

Recent Questions Asked Finance Basics

Q : How the fact violate the efficient markets hypothesis

Q : Impact of statue on number of workers automaker hires

Q : Consequences of tax on both consumption and production

Q : What are total fixed expenses

Q : Determining stock predicted return

Q : Which of the following statements is true

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