Consider the following information regarding the Fama French Carhart four factor

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3. Consider the following information regarding the Fama French Carhart four factor model:

Factor Portfolio	Average Monthly Return (%)	IBM Factor Betas	GE Factor Betas	Wal-Mart Factor Betas
Rm - rf	0.42	0.712	0.937	0.782
SMB	0.18	-0.133	-0.214	0.224
HML	0.61	0.124	0.254	0.123
PR1 YR	0.66	0.276	-0.147	0.447

Using the FFC four factor model and the historical average monthly returns, what is the expected monthly excess return over risk-free rate for IBM, GE and Walmart?

Hint

Accounts & FinanceThe average return is the straightforward mathematical average of several returns produced during a given time period. A security's or portfolio's historical performance can be gauged using the average return. Since compounding is not taken into account, the average return is different from an annualized return....

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