Which of the Following Factors Were Used by Fama and French

question 64

Multiple Choice

Which of the following factors were used by Fama and French in their multi-factor model?

• A)Return on the market index.
• B)Excess return of small stocks over large stocks.
• C)Excess return of high book-to-market stocks over low book-to-market stocks.
• D)All of the above factors were included in their model.
• E)None of the above factors were included in their model.

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Definitions:

Digestion

The biological process by which the complex molecules in food are broken down into simpler ones that can be absorbed and utilized by the body.

Pancreatic Juice

A fluid secreted by the pancreas that contains digestive enzymes and bicarbonate ions and assists in the digestion of proteins, fats, and carbohydrates in the small intestine.

Major Food Groups

Categories of foods sharing similar nutritional properties, including fruits, vegetables, grains, protein foods, and dairy.

Gastric Juice

A digestive fluid, secreted by the stomach, containing hydrochloric acid, digestive enzymes, and intrinsic factor, necessary for the digestion of food and absorption of vitamin B12.