25. You expect GOOGL to return ………………………….%26. Suppose GOOGL actually returns 15.5%. GOOG’s alpha is ………………………. %. Use the following information to answer questions 25 - 26.Interpret the Fama-French model. T-bills currently offer a 2% yield.E[TABC]: = rf + ßmkt(E[M] − rf) + ßßv/mv(High – Low) + ßsize(Small – Big)-GOOGL company's factor loadings are BMkt-1.50, BBV/MV=-0.20, Psize=-1.10.The market beat Tbills by 14% this year, high B/V companies underperformed low B/V ones by 3%,and small firms outperformed large ones by 6%.

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You expect GOOGL to return ………………………….% 26. Suppose GOOGL actually returns 15.5%. GOOG’s alpha is ……………………….

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

25. You expect GOOGL to return ………………………….%

26. Suppose GOOGL actually returns 15.5%. GOOG’s alpha is ………………………. %.

Use the following information to answer questions 25 - 26.
Interpret the Fama-French model. T-bills currently offer a 2% yield.
E[TABC]: = rf + ßmkt(E[M] − rf) + ßßv/mv(High – Low) + ßsize(Small – Big)
-
GOOGL company's factor loadings are BMkt-1.50, BBV/MV=-0.20, Psize=-1.10.
The market beat Tbills by 14% this year, high B/V companies underperformed low B/V ones by 3%,
and small firms outperformed large ones by 6%.

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