Use the Table for the Question(s)below

question 38

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 IBM is closest to:

• A)0.79%.
• B)0.53%.
• C)0.71%.
• D)1.01%.

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Definitions:

Fixed Selling

Costs that remain constant regardless of the volume of goods or services sold.

Direct Labor-Hours

The total hours worked by employees that are directly involved in the manufacturing process.

Raw Materials Cost

The expense of materials that are used in the manufacturing process to create goods, not yet processed or altered.

Direct Labor Wage

The remuneration paid to employees who are directly involved in the production of goods or the provision of services.