Fama and French (1992) Found That

question 19

Multiple Choice

Fama and French (1992) found that

• A)firm size had better explanatory power than beta in describing portfolio returns.
• B)beta had better explanatory power than firm size in describing portfolio returns.
• C)beta had better explanatory power than book-to-market ratios in describing portfolio returns.
• D)macroeconomic factors had better explanatory power than beta in describing portfolio returns.
• E)None of the options

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Definitions:

Secured Unperfected Creditor

A creditor that has a security interest in the debtor's property but has not completed all legal steps or filings to perfect the claim.

Financing Statement

A document filed to give public notice of a secured party's interest in the debtor's collateral.

Security Interest

A legal claim or right granted over assets to secure the performance of an obligation, usually repayment of a loan.

Secured Party

An entity that holds an interest in a secured transaction, typically having a claim to a debtor's collateral in case of default.