What is the stock predicted return

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An analyst has modeled the stock of a company using the Fama-French three-factor model. The risk-free rate is 5%, the market return is 10%, the return on the SMB portfolio (rSMB) is 3.2%, and the return on the HML portfolio (rHML) is 4.8%. If ai = 0, bi = 1.2, ci = −0.4, and di = 1.3, what is the stock’s predicted return?

Reference no: EM131059801

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