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Business, 07.07.2021 15:50 2kdragginppl

Peter, an analyst at Grotesque Tech (GT), models the stock of the company. Suppose that the risk-free rate rRF = 5%, the required market return rtvl = 10%, the risk premium for small stocks rsMB = 3.2%, and the risl premium for value stocks rHML = 4.8%. Suppose also that Peter ran the regression for Grotesque Tech's stock and estimated the following regression coefficients: aGT = 0.00, bGT = 1.2, CGT -20.4, and dGT = -1.3. If Peter uses a Fama-French three-factor model, then which of the following values correctly reflects the stock's required return? a. 72.52%
b. 60.52%
c. 50.48%
d. 65.52%

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Peter, an analyst at Grotesque Tech (GT), models the stock of the company. Suppose that the risk-fre...
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