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

question 7

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
• E) None of the options are correct.

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Definitions:

Conjunctive Adverbs

Words that connect clauses or sentences, showing relation in terms of cause, contrast, or effect, among others.

Punctuated Correctly

Marked with appropriate punctuation marks, ensuring clarity and proper reading structure.

Conjunctions

Words used to connect clauses, sentences, or words in the same clause, playing a crucial role in building complex sentences and ensuring coherence in speech and writing.

Conjunctive Adverbs

Adverbs that connect clauses or sentences, showing relationship in terms of cause, contrast, time, or sequence (e.g., however, therefore, moreover).