|
Title: Using the FFC four factor model and the historical average monthly returns, the expected monthly ... Post by: johnpaech on Nov 20, 2017 Using the FFC four factor model and the historical average monthly returns, the expected monthly return for Wal-Mart is closest to:
A) 0.71% B) 0.53% C) 1.38% D) 0.79% Title: Re: Using the FFC four factor model and the historical average monthly returns, the expected monthly ... Post by: deusmaroto on Nov 20, 2017 D
Explanation: D) Factor Portfolio Average Monthly Return (%) IBM Factor Betas GE Factor Betas Wal-Mart Factor Betas IBM Return Calc. GE Return Calc. Wal-Mart Return Calc. Rm - rf 0.64 0.712 0.937 0.782 0.456 0.600 0.500 SMB 0.17 -0.103 -0.214 0.224 -0.018 -0.036 0.038 HML 0.53 0.124 0.154 0.123 0.066 0.082 0.065 PR1 YR 0.76 0.276 -0.147 0.247 0.210 -0.112 0.188 E[Rs] = 0.714 0.533 0.791 |