Book Value Is Not as Important as the P/E and Size

question 49

True/False

Book value is not as important as the P/E and size effect, according to Professors Fama and French.

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Definitions:

Contributory Negligence

Contributory negligence is a legal doctrine where if the plaintiff is found to be partly at fault for the accident or damage, they may be barred from receiving any compensation from the defendant.

Dram Shop Acts

Laws that hold alcoholic beverage servers legally responsible for harm that intoxicated or underage patrons cause after being served alcohol.

Affirmative Defense

A defense in which the defendant introduces evidence, which, if found to be credible, will negate criminal or civil liability, even if it is proven that the defendant committed the alleged acts.

Negligence Claim

A legal assertion that one party's failure to exercise reasonable care has resulted in harm or injury to another.