Extend Fama-French with the Carhart momentum factor WML (Winners Minus Losers). Four-factor alpha = return unexplained by market, size, value, and momentum exposures.
Enter the values for the scenario you are assessing. Extend Fama-French with the Carhart momentum factor WML (Winners Minus Losers). Four-factor alpha = return unexplained by market, size, value, and momentum exposures. Use the carhart 4f momentum result to inform your calculation.