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:

Term Bonds

Bonds that have a fixed maturity date on which the principal amount is due to be paid back to investors in full.

Serial Bonds

Bonds issued by a corporation or government that are scheduled for repayment at a series of future dates.

Installment Note

A loan that requires regular payments, or installments, of principal and interest over a set period of time.

Issuing Company

A company that offers its securities for sale to the public or to private investors.