Fama and French Suggest a Three Factor Model Approach

question 58

Multiple Choice

Fama and French suggest a three factor model approach.Which of the following is not included in their approach?

• A) Excess returns to a broad market index
• B) Return differences between small-cap and large-cap portfolios
• C) Return differences between industry characteristics
• D) Return differences between value and growth stocks
• E) Both c and d

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Definitions:

Gender Identity

A person's intrinsic feeling of their gender identity, which might not align with the gender assigned to them at birth.

Transgender

Describes individuals whose gender identity differs from the sex they were assigned at birth.

Assigned At Birth

A term typically referring to the gender designation given to an individual at birth, based on physical anatomy.

Sexual Intercourse

A physical activity involving the sexual organs that can result in reproduction and/or provide sexual pleasure.