The Fama-French ModelI) Is a Useful Tool for Benchmarking Performance

question 22

Multiple Choice

The Fama-French modelI) 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 are 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
• E) II and V

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Definitions:

Objective Eligibility Criteria

The predefined and transparent standards used to determine an individual's or entity's qualification for a program or benefit.

Public Assistance

Government-provided support aimed at individuals or households with inadequate or no income.

Social Insurance

A government-sponsored program aimed at providing financial assistance to individuals in events of unemployment, disability, or old age.

National-Average Poverty Rates

The proportion of the population that lives below the poverty line, averaged across a nation, indicating the level of economic hardship and inequality.