Which of the Following Correctly Identifies the Factors Included in the Fama-French

question 41

Multiple Choice

Which of the following correctly identifies the factors included in the Fama-French three-factor model?

• A)standard deviation, beta, and company size
• B)the risk-free rate, beta, and the market risk premium
• C)company size, company industry, and beta
• D)price-earnings ratios, beta, and book-to-market ratios
• E)beta, company size, and book-to-market ratios

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Definitions:

Fashion Model

An individual employed to display clothing, accessories, or other fashion items by wearing them for the purpose of advertising or showcasing them in various media.

Actively Seeking Employment

A status where an individual is without a job but is searching for employment and is currently available to work.

Employed Count

The total number of individuals in a specific area who are actively engaged in a job and earning a salary or wage.

Discouraged Workers

Those who drop out of the labor force in frustration because they can’t find work