Use the Table for the Question(s)below

question 16

Multiple Choice

Use the table for the question(s) below.
Consider the following information regarding the Fama-French-Carhart four factor model:
-Using the FFC four factor model and the historical average monthly returns,the expected monthly return for GE is closest to:

• A)0.53%.
• B)0.73%.
• C)0.79%.
• D)0.71%.

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Definitions:

Quality Control

The process of ensuring the standards and requirements of products or services are met through consistent measurements and testing.

P-Value

A statistical measure indicating the probability of obtaining test results at least as extreme as the ones observed during the test, assuming that the null hypothesis is true.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive" in hypothesis testing.

P-Value

The probability of observing a test statistic at least as extreme as the one observed, assuming the null hypothesis is true.