Which One of the Following Combinations Will Tend to Produce

question 87

Multiple Choice

Which one of the following combinations will tend to produce the highest rate of return according to the Fama-French three-factor model? Assume beta is constant in all cases.

• A)large market capitalization and high book-to-market ratio
• B)large market capitalization and low book-to-market ratio
• C)small market capitalization and high book-to-market ratio
• D)small market capitalization and a book-to-market ratio of 1.0
• E)small market capitalization and a low book-to-market ratio

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Definitions:

Mass-Killing Shooters

Individuals who commit acts of mass murder, typically using firearms, in spaces such as schools, workplaces, or public areas, often motivated by personal grievances or ideological beliefs.

Gang Affiliations

The association with, or membership in, a group of individuals who share a common identity and oftentimes engage in criminal activities.

Psychological Disorder

A pattern of behavioral or psychological symptoms that impact multiple life areas and/or create distress for the person experiencing these symptoms.

Violent Crimes

Acts that involve force or threat of force against others including murder, rape, and assault.