Fama and MacBeth Found That the Relationship Between Average Excess

question 37

Multiple Choice

Fama and MacBeth found that the relationship between average excess returns and betas was ___________.

• A) linear
• B) nonexistent
• C) as expected,based on earlier studies
• D) Fama and MacBeth did not examine the relationship between excess returns and beta
• E) a and c

---

Definitions:

Direct Material

Raw materials used in the manufacturing process that are directly attributed to the finished product.

Production Cost

The total expenses incurred in the process of producing goods or services, including materials, labor, and overhead costs.

Organization's Objectives

The specific goals set by a business or organization to guide its operations and strategic direction.

Developing

The act of growing, enhancing, or improving something, often applied in contexts such as software development, business strategies, or personal skills.