Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

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?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M939592

Have any Question? 


Related Questions in Basic Finance

1 distinguish between the four types of relational

1. Distinguish between the four types of relational collaborative arrangements. Provide an example of each. 2. What do you believe will be the impact of the Internet on market distribution by 2010? 3. What is a shippers ...

Read one practical article of how psychology affects

Read one practical article of how psychology affects spending behavior. Easily retrieve possible articles by doing an online search using the terms "psychology" and "spending." Summarize the main points of the article.

1 what are the responsibilities and typical payoff for a

1. What are the responsibilities and typical payoff for a general partner in a venture capital limited partnership? 2. Distinguish between positive covenants and negative covenants in venture capital investment contracts ...

What is partial amortizationa borrower obtains a fully

What is partial amortization? A borrower obtains a fully amortizing CPM loan for $125,000 at 11 percent interest for 10 years. What will be the monthly payment on the loan? If this loan had a maturity of 30 years, what w ...

1 in 2009 zimbabwe ended its hyperinflation by adopting the

1. In 2009, Zimbabwe ended its hyperinflation by adopting the U.S. dollar as legal tender. What potential problems could this strategy have for the Zimbabwean government? 2. What does the statistical evidence show about ...

Discuss the process of capital budgeting including the cash

Discuss the process of capital budgeting including the cash flows that should and shouldn't be considered, incorporating risk measures into the process, sensitivity analysis, etc.

According to an article in the wall street journal in late

According to an article in the Wall Street Journal, in late 2009, "Between Dec. 9 and 11, some big European and U.S. banks made bearish calls on the euro by buying one-year euro ‘puts.'" a. What is a "bearish call"? b. W ...

1 what is the risk insured by private mortgage insurance2

1. What is the risk insured by private mortgage insurance? 2. What are the principal features of an affordable housing loan qualification, and how are they different from those of recent temporary "Making Homes Affordabl ...

Abc publishing sells maps for 700 each the company is

ABC Publishing sells maps for $7.00 each. The company is currently breaking even with sales of 200,000 maps per year. ABC's variable cost per map is currently $5.00. Management has estimated that if production costs are ...

What is the expected relationship between dividend payout

What is the expected relationship between dividend payout levels and the growth rate and availability of positive-NPV projects, under the agency cost model of dividends? What about the expected relationship between divid ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen