Suppose Apple has beta_Market = 1, beta_SMB = -0.5. The average excess return on Apple is 2.5%. The average excess return on the market is 5%. E[R_SMB] = 2% E[R_HML] = 3% Then according to the Fama-French 3-factor model, Apple has a beta_HML = __ (answer with one decimal, e.g., 0.1) A.
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![Suppose Apple has beta_Market = 1, beta_SMB = -0.5.
The average excess return on Apple is 2.5%. The average excess return on the market is 5%.
E[R_SMB] = 2%
E[R_HML] = 3%
Then according to the Fama-French 3-factor model, Apple has a beta_HML = _ (answer with
one decimal, e.g., 0.1)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d0fdcc1-789f-487a-b9a6-3cd22fdf1b3e%2F85aa589b-8b64-4391-a1af-c0ba499bd9f4%2Fkm5xcs_processed.png&w=3840&q=75)
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