Fama and French (1988)found That the Return on the Aggregate

question 32

Multiple Choice

Fama and French (1988) found that the return on the aggregate stock market _________

• A) is higher when the dividend yield is high
• B) is lower when the dividend yield is high
• C) is unrelated to the dividend yield
• D) is higher when bank failures are high
• E) is unrelated to the economy

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Definitions:

Involuntary Muscles

Muscles that operate automatically without conscious control, such as the heart and muscles in the digestive system.

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions such as heartbeat, digestion, and breathing.

Somatic

Relating to the body, especially as distinct from the mind or emotions; often used in reference to bodily symptoms with no apparent physical cause.

Parasympathetic

The part of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.