Liew and Vassalou (2000) Show That Returns on Style Portfolios

question 47

Multiple Choice

Liew and Vassalou (2000) show that returns on style portfolios (SMB and HML)

• A) seem like statistical flukes.
• B) seem to predict GDP growth.
• C) may be proxies for business cycle risk.
• D) seem to predict GDP growth and may be proxies for business cycle risk.
• E) None of the options are correct.

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Definitions:

Deceptive Pollination

A reproductive strategy in some plants where they trick pollinators into visiting flowers without offering a reward, thereby ensuring pollination.

Predation

The biological interaction where one organism, the predator, hunts and consumes another organism, the prey, as a source of energy and nutrients.

Herbivory

The eating of plants by animals, a critical ecological interaction that influences plant community structure and dynamics.

Müllerian Mimicry

Occurs when several harmful or distasteful species resemble each other in appearance, facilitating the learned avoidance of predators.