The Fama and French Three-Factor Model Does Not Use ___

question 56

Multiple Choice

The Fama and French three-factor model does not use ___ as one of the explanatory factors.

• A) industrial production
• B) inflation
• C) firm size
• D) book-to-market ratio
• E) industrial production or inflation

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Definitions:

Prestige Power

The power stemming from one’s status and reputation.

Organizational Politics

The activities within an organization aimed at improving someone's status or position and are often seen as self-serving at the expense of the company.

Dependence Perspective

The point of view that a person accrues power by being dependent on that person for things they value.

Empowering Staff

The process of giving employees more authority and responsibility to make decisions and act upon them within their roles.