The following table shows the sensitivity of four stocks to the three Fama-French factors. Assume...
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Finance
The following table shows the sensitivity of four stocks to the three Fama-French factors. Assume the interest rate is 5%, the expected risk premium on the market is 8%, the expected risk premium on the size factor is 3.5%, and the expected risk premium on the book-to-market factor is 5.6%. Market Size Book-to-market Ford 1.28 -0.11 0.80 Walmart 0.62 -0.43 -0.21 Citigroup 1.09 -0.03 0.89 Apple 1.29 -0.63 -0.68 Calculate the expected return on each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return % Ford Walmart Citigroup Apple % %
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