Based on the Readings, in Which Year Would You Suspect

question 25

Multiple Choice

Based on the readings, in which year would you suspect that applications to police departments would have decreased dramatically?

• A) 2017
• B) 2014
• C) 2015
• D) 2016

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Definitions:

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.

CCAPM

Consumption Capital Asset Pricing Model; it extends the Capital Asset Pricing Model by considering the consumption habits of investors to explain asset prices.

Traditional CAPM

The Capital Asset Pricing Model, a framework used to determine the expected return on an investment, factoring in risk-free rate, the asset's beta, and the market risk premium.

Fama-French Three-factor Model

A model that expands the CAPM by adding size risk and value risk factors to the market risk factor, explaining stock returns more accurately.