Westonci.ca is the premier destination for reliable answers to your questions, brought to you by a community of experts. Get quick and reliable answers to your questions from a dedicated community of professionals on our platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

The market return is 10% and the risk free rate is 3%. Rascals inc. Has a market beta of 1. 0, a smb beta of −. 60, and a hml beta of −0. 85. The risk premium on hml and smb are both 2%. If the single factor model generates a regression coefficient of 1. 3, using the fama-french three factor model, what is the different in returns between the three-factor model and the single factor model expected returns on rascal inc. Stock?.