Was that just a plain factor model with factor sensitivities of macroeconomic variables. It had rf as the intercept. The macroeconomic model has the return on the stock when there are no macro surprises. I can’t tell what the printout is saying.

macroeconomic model and yup im aware that the required return should have been the expected market return but meh

Son of a . . .

yeah, i remember this…and thought it was weird. i went ahead and used the rf rate, because the model had it as the intercept, but it felt wrong because i thought we should have been using an expected return from an apt model or something… i ended up getting it right, but i’m still a bit confused as to why they used the rf rate in a macro model. anyone know??

my thoughts exactly this is the kinda shit im sick of from this damn CFAI let it be known in a macroeconomic model, the expected return is the expected market return b/c the surprises are zero except in the case of mock 2 f*ckers

Yea, I got the expected returns right, but I chose factor model because of the intercept.