On a TV Game Show, a Contestant Is Shown 8

question 33

Multiple Choice

On a TV game show, a contestant is shown 8 products from a grocery store and is asked to choose the three least-expensive items in the set. The three chosen items need not be
In any particular order. In how many ways can the contestant choose the three items?

• A) 336
• B) 6720
• C) 6
• D) 56

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Definitions:

Cyclical Beta

A measure of how sensitive a stock's price is to economic cycles, with higher values indicating greater sensitivity.

Market Risk Premium

The additional return over the risk-free rate that investors require to compensate them for the risk of holding a risky market portfolio.

Countercyclical Beta

Countercyclical beta refers to the measure of an asset’s return sensitivity in opposition to market trends, often gaining value in downturns.

Fama-French Three-factor Model

An asset pricing model that expands on the capital asset pricing model by including size risk and value risk factors in addition to market risk.