The Fama-French Model I) Is a Useful Tool for Benchmarking

question 29

Multiple Choice

The Fama-French model I) is a useful tool for benchmarking performance against a well-defined set of factors.
II. premia are determined by market irrationality.
III. premia are determined by rational risk factors.
IV. is the reason that the premia is unsettled.
V. is not a useful tool for benchmarking performance against a well-defined set of factors.

• A)I only
• B)V only
• C)I and II
• D)I and IV

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Definitions:

Sympathetic Nervous System Arousal

Activation of the part of the autonomic nervous system that increases heart rate, releases adrenaline, and prepares the body for a 'fight or flight' response.

Sympathetic Nervous System

The sympathetic nervous system is part of the autonomic nervous system that prepares the body for fight or flight responses, increasing heart rate, redirecting blood flow, and releasing adrenaline, among other effects.

Subjective Experience

Personal, individual perceptions and feelings that are unique to each person and cannot be fully understood or experienced by others.

Tranquilizing Drugs

Medications used to reduce tension or anxiety, often acting by depressing the central nervous system.