Use the Equation for the Question(s) Below

question 18

Multiple Choice

Use the equation for the question(s) below.
Consider the following factor model:
E[R_s] - r_f = (E[R_Mkt] - r_f) + E[R_SMB] + E[R_HML] + E[RPR1 YR]
-The term measures the sensitivity of the securities returns to

• A) the overall market.
• B) book to market.
• C) size.
• D) momentum.

---

Definitions:

Schedule C

A tax form used by sole proprietors to report income and expenses from a business.

Actual Expenses

Real, documented expenses incurred for a specific purpose, often used for tax deduction calculations.

Local Benefits

Refers to services or advantages provided by local government or community organizations to their residents.

Real Property Taxes

Taxes imposed by local governments on real estate properties based on their assessed value.