Which of the Following Is NOT an Input into the Fama-French

question 24

Multiple Choice

Which of the following is NOT an input into the Fama-French three-factor model?

• A)The difference between low book-to-market returns and high book-to-market returns.
• B)The difference between growth stock returns and value stock returns.
• C)The market portfolio returns.
• D)The difference between small-cap returns and large-cap returns.

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Definitions:

Exculpatory Clause

A contract provision that relieves one party from liability for harm caused during the execution of the contract.

Tort Liability

Legal responsibility arising from a civil wrong that causes harm or loss to an individual or property, not based on contracts.

Illegal Agreements

Contracts or arrangements that are prohibited by law and thus are not enforceable by the judicial system.

Noncompetition Clause

A contract provision that prohibits a party from engaging in similar business or trade in competition against another party.