Jagannathan and Wang (2006) Find That the CCAPM Explains Returns

question 26

Multiple Choice

Jagannathan and Wang (2006) find that the CCAPM explains returns ______ the Fama-French three-factor model, and that the Fama-French three-factor model explains returns ______ the traditional CAPM.

• A) worse than; worse than
• B) worse than; better than
• C) better than; better than
• D) better than; worse than
• E) equally as well as; equally as well as

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Definitions:

Manual Recording

The process of documenting information by hand, as opposed to using electronic means.

Debit Sheet

A record listing all debit transactions, often used in accounting to monitor expenditures.

Double-Entry Bookkeeping System

A method of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account, ensuring the accounting equation balances.

Single-Entry System

An accounting method where each financial transaction is recorded with a single entry to the accounting records, less complex than double-entry accounting.