Assume the Following Data for a Stock: Risk-Free Rate =

question 16

Multiple Choice

Assume the following data for a stock: Risk-free rate = 5%; Beta (market) = 1.5; Beta (size) = 0.3; Beta (book-to-market) = 1.1; Market risk premium = 7%; Size risk premium = 3.7%; and Book-to-market risk premium = 5.2%.Calculate the expected return on the stock using the Fama-French three-factor model.

• A)22.3%
• B)7.8%
• C)11.5%
• D)20.9%

---

Definitions:

Self-Esteem Trap

The situation where an individual's self-worth is constantly contingent upon external validation and success, leading to potential psychological distress.

Bad News Skills

The ability to effectively communicate unfavorable or disappointing information in a sensitive and constructive manner.

Basic Human Needs

Basic human needs represent the fundamental aspects necessary for individuals to survive and thrive, including physiological needs, safety, love/belonging, esteem, and self-actualization.

Customer Service

The support and guidance offered by a business to individuals who purchase or utilize its goods or services.