he following table shows the sensitivity of four stocks to the three Fama-French factors. Assume the Interest rate is 3%, the expected sk premlum on the market is 6%, the expected risk premlum on the size factor is 3.1%, and the expected risk premlum on the book-to- arket factor is 4.1%. Ford Walmart Citigroup Market Size Book-to-market Apple 1.41 -e.61 -e. 84 1.40 e.86 1.21 -0.23 -0.40 -8.48 e.70 -e.31 1.01 alculate the expected return on each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to decimal places.) Expected return Ford Valmart Citigroup
he following table shows the sensitivity of four stocks to the three Fama-French factors. Assume the Interest rate is 3%, the expected sk premlum on the market is 6%, the expected risk premlum on the size factor is 3.1%, and the expected risk premlum on the book-to- arket factor is 4.1%. Ford Walmart Citigroup Market Size Book-to-market Apple 1.41 -e.61 -e. 84 1.40 e.86 1.21 -0.23 -0.40 -8.48 e.70 -e.31 1.01 alculate the expected return on each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to decimal places.) Expected return Ford Valmart Citigroup
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:he following table shows the senstivity of four stocks to the three Fama-French factors. Assume the Interest rate is 3%, the expected
sk premlum on the market is 6%, the expected risk premlum on the sze factor is 3.1%, and the expected risk premlum on the book-to-
arket factor is 4.1%.
Apple
1.41
Ford
Walmart
Citigroup
1.21
Market
1.40
e.86
-e.23
e.70
-0.61
-8. 84
Size
-0.48
-0.48
Book-to-market
-e.31
1.01
alculate the expected retum on each stock. (Do not round intermediate calculations. Enter your answers as a percent rounded to
decimal places.)
Expected return
Ford
Nalmart
%
Citigroup
Apple
%
%
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