The Fama and French Three-Factor Model Uses ___, ___, and ___

question 41

Multiple Choice

The Fama and French three-factor model uses ___, ___, and ___ as factors.

• A)industrial production; term spread; default spread
• B)industrial production; inflation; default spread
• C)firm size; book-to-market ratio; market index
• D)firm size; book-to-market ratio; default spread

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Definitions:

Covenant Not to Compete

A legal agreement in which one party agrees not to enter into or start a similar profession or trade in competition against another party.

Tort of Defamation

A civil wrong that involves making false statements about someone that harm their reputation.

Intoxicated

A state of being affected by substances such as alcohol or drugs, which impair cognitive functions and physical abilities, leading to reduced control and judgment.

Unconscionability

A condition in which a contract or a clause within the contract is deemed unjust or extremely one-sided in favor of the party with more power.