The Fama-French Three-Factor Model Is Based on

question 75

Multiple Choice

The Fama-French three-factor model is based on

• A) Standard deviation, beta and expected return
• B) The risk-free rate, beta and the market risk premium
• C) Company size, company industry and standard deviation
• D) P/E ratio, beta and book-to-market ratios
• E) Beta, company size and book-to-market ratios

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Definitions:

Obedience

A form of compliance that occurs when people follow direct commands, usually from someone in a position of authority.

Obedience

The act of following orders, rules, or requests from someone in authority.

Authority Figures

Individuals or entities recognized for holding positions of power and influence, often within organizations, societies, or specific fields, guiding or regulating behavior and decisions.

Social Forces

The societal influences that affect individuals' behaviors, attitudes, and actions within a community or society.