Fama and French Claim That After Controlling for Firm Size

question 16

Multiple Choice

Fama and French claim that after controlling for firm size and the ratio of firm's book value to market value,beta is ______________.
I.highly significant in predicting future stock returns
II.relatively useless in predicting future stock returns
III.a good predictor of firm's specific risk

• A) I only
• B) II only
• C) I and III only
• D) I, II and III

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Definitions:

Glandular Epithelium

A type of epithelial tissue that forms the secreting portion of glands, either endocrine or exocrine.

Underlying Connective Tissue

The supportive tissue that lies beneath epithelial tissue, providing structural and nutritional support to epithelial cells.

Pseudostratified Columnar

Describes a type of epithelial tissue where cells of different heights appear to be in layers, but all cells are attached to the basement membrane.

Simple Squamous

A type of epithelial cell that is flat and thin, often found lining surfaces involved in passive diffusion, such as the alveoli in the lungs.