Liew and Vassalou (2000) Show That Returns on Style Portfolios

question 43

Multiple Choice

Liew and Vassalou (2000) show that returns on style portfolios (SMB and HML)

• A)seem like statistical flukes.
• B)seem to predict GDP growth.
• C)may be proxies for business cycle risk.
• D)seem to predict GDP growth and may be proxies for business cycle risk.
• E)None of the options

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Definitions:

Consistent Pattern

A repeated or regular manner of behavior, action, or occurrence.

Childhood Experiences

The events, relationships, and learning situations a person encounters during their formative years, significantly impacting development and personality.

Personality Determination

The process by which one's character is shaped, involving both genetic factors and environmental influences.

Wealth And Power

The possession of significant financial resources and the ability to influence or control the behavior of others, often seen in societal and economic contexts.