Calculate the expected return on the stock

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Assume the following data for a stock: Risk-free rate = 5 percent; beta (market) = 1.5; beta (size) = 0.3; beta (book-to-market) :11; market risk premium = 7 percent; size risk premium = 3.7 percent; and book-to-market risk premium = 5.2 percent. Calculate the expected return on the stock using the Fama-French three-factor model.

Reference no: EM133110615

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