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:

Quartz Sandstone

Sandstone composed mostly of quartz grains.

Phosphate

A salt or ester of phosphoric acid, often used in fertilizers due to its role in plant energy transfer.

Environmental Advantage

The benefit or edge obtained by using natural resources or ecological principles in a way that promotes sustainability and reduces harm to the environment.

Mining

The process of extracting minerals, metals, and other geological materials from the Earth.