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Suppose there is a Fama-French model estimated for a stock of Shoemaker Ltd.:

$α = 0.01$

$β_M = 0.9$

$r_M = 0.12$

$β_S = 0.3$

$S = 0.05$

$β_H = 0.2$

$H = 0.06$

$r_F = 0.03$

How would you calculate required rate of return on stock, if you don't believe factor models (like CAPM or Fama-French) are trustworthy?

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