Explain the importance of a performance model

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Question 1.Calculate the required return for each stock based on the three-factor model for 2022.

Question 2.Calculate the realized return for each stock for 2022.

Question 3. If equity returns in 2023 are expected to converge to the levels determined by the three-factor model, which stocks would you buy?

Question 4. Explain the importance of a performance model, such as the CAPM or the three-factor model, to assess the efficiency of the capital market

Reference no: EM133377241

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