Which of the Following Is Included in the Fama-French Three-Factor

question 16

Multiple Choice

Which of the following is included in the Fama-French three-factor model?

• A)Market factor and liquidity factor.
• B)Market factor, liquidity factor, and size factor.
• C)Market factor, liquidity factor, and book-to-market factor.
• D)Market factor, book-to-market factor, and size factor.

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Definitions:

Shutdown Point

The level of output and price at which a firm's total revenue is equal to its total variable costs, below which the firm will decide to cease production in the short run.

Break-even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain.

Long-run Supply Curve

A graphical representation showing the relationship between the price level and the quantity of output that producers are willing to supply, taking into account all factors of production can be varied.

Profitable Output

The production or output level from a business operation that generates a financial gain or profit.