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

Comprehend the relationship between tax credits for investment and shifts in the demand for loanable funds and supply of dollars in the foreign-currency exchange market.

Recognize the effects of capital flight on demand for loanable funds, supply of dollars, and net capital outflows in the foreign-currency exchange market.

Analyze the impact of a government default on its debt on the country's real interest rates and currency valuation in the open-economy macroeconomic model.

Identify how capital flight influences the market for foreign-currency exchange.

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Definitions:

Dignity-Conserving Repertoire

Strategies or approaches that individuals utilize to maintain their self-respect and dignity when facing issues that could undermine their sense of self.

Social Dignity

The recognition of an individual's intrinsic worth and the respect accorded to them within a society.

Functional Independence

The ability of an individual to carry out daily activities and tasks without the need for assistance from others.

Spirits

Can refer to alcoholic beverages, or in a different context, to the non-physical aspects of a person's being, often considered to be synonymous with the soul.