The Fama French Model I) Is a Useful Tool for Benchmarking

question 41

Multiple Choice

The Fama French model I) is a useful tool for benchmarking performance against a well defined set of factors.
II. premia are determined by market irrationality.
III. premia are determined by rational risk factors.
IV. is the reason that the premia is unsettled.
V. is not a useful tool for benchmarking performance against a well defined set of factors.

• A) I only
• B) V only
• C) I and II
• D) I and IV
• E) II and V

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Definitions:

Unearned Revenue

Money received by a business for services or products yet to be delivered or provided; considered a liability until the service or product is delivered.

Utilities Expense

The cost incurred by a business for the consumption of utilities services like electricity, gas, water, and sewage.

Accounts Payable

Liability accounts representing the amounts owed by a company to its suppliers or creditors for goods and services received.

General Journal

A journal used in accounting that records all day-to-day financial transactions in chronological order.