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Which of the Following Variables Do Fama and French Claim

question 25

Multiple Choice

Which of the following variables do Fama and French claim do a better job explaining share returns than beta?
I. Book to market ratio
II. Unexpected change in industrial production
III. Firm size


Definitions:

Average Product

The output per unit of input, such as labor or capital, calculated by dividing total output by the total quantity of the input.

Marginal Product

The additional output produced as a result of using one more unit of a particular input, holding all other inputs constant.

Capital/Labor Ratio

The capital/labor ratio is a measure used in economics to indicate the amount of capital relative to the quantity of labor used in the production process.

Labor Productivity

The measure of the economic output produced per unit of labor input.

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