Use the Table for the Question(s)below

question 14

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 Wal-Mart is closest to:

• A)0.71%
• B)0.53%
• C)1.38%
• D)0.79%

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Definitions:

Securities Exchange Act

The Securities Exchange Act is a U.S. federal law that governs the trading of securities, such as stocks and bonds, to protect investors against fraud and to regulate the securities industry.

Scienter

A legal term referring to the knowledge of wrongdoing, particularly in cases of fraud or deceit.

Fraud

The intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Scienter

Knowledge of the wrongful nature of one's actions, particularly in the context of securities fraud.