A portfolio has a market beta of 0.8, a factor loading of 1 to SMB and...

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Finance

A portfolio has a market beta of 0.8, a factor loading of 1 toSMB and a sensitivity of -2 to HML. The portfolio has earned 16%return. What was the abnormal return on the portfolio, if the riskfree rate was 0%, market's excess return was 8%, the SMB factorpremium was -10% and the HML factor premium was -4%?

22%

16.2%

4.4%

11.6%

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A portfolio has a market beta of 0.8, a factor loading of 1 toSMB and a sensitivity of -2 to HML. The portfolio has earned 16%return. What was the abnormal return on the portfolio, if the riskfree rate was 0%, market's excess return was 8%, the SMB factorpremium was -10% and the HML factor premium was -4%?22%16.2%4.4%11.6%

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