The Fama and French Three-Factor Model Uses ___, ___, and ___

question 7

Multiple Choice

The Fama and French three-factor model uses ___, ___, and ___ as factors.

• A) industrial production; term spread; default spread
• B) industrial production; inflation; default spread
• C) firm size; book-to-market ratio; market index
• D) firm size; book-to-market ratio; default spread
• E) None of the options are correct.

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Definitions:

Endorsement

Official approval or support, often used in the context of public approval by a prominent figure or certification by a regulatory authority.

Date and Time Stamp

A digital or physical mark indicating the specific date and time when an event occurred or a document was created, modified, or received.

Audit Purposes

Activities undertaken to review and inspect the accuracy, completeness, and compliance of financial records and processes within an organization.

Security Features

Measures or mechanisms implemented to ensure safety and prevent unauthorized access or damage.