Carhart's Alpha Is a Measure of Enhanced Operation After Controlling $\mathrm{A}$

question 12

Multiple Choice

Carhart's Alpha is a measure of enhanced operation after controlling for the forces generated by:

• A) the market return and momentum premium
• B) size premium and value premium
• C) both \( \mathrm{A} \) and \( \mathrm{B} \)
• D) none of these choices

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Definitions:

Risk Optimization

The process of identifying, assessing, and prioritizing risks followed by coordinating and applying resources to minimize, monitor, and control the probability or impact of unfortunate events.

Emerging Companies

are businesses in the early stages of development, usually characterized by innovative products or services and high growth potential.

Equity Capital

The funds raised by a company in exchange for shares of ownership, providing investors with a stake in the company.

Institutional Sources

Organizations or establishments that provide substantial information, data, or funding, often in a formalized or official capacity.