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:

Rhomboideus Group

A collection of muscles in the upper back that connect the spine to the scapula, important for shoulder blade movement.

Trapezius Group

A major muscle group in the upper back and neck that supports arm and shoulder movements and extends the neck.

Acromiotrapezius

A muscle in some mammals that extends from the neck and back to the scapula, aiding in movements of the shoulder.

Clavotrapezius

Clavotrapezius, in certain animals like rodents, is a muscle that extends from the clavicle to the scapula, facilitating movement of the scapula and contributing to the posture of the upper body.