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:

Positively Correlated

A relationship between two variables where one variable increases as the other also increases.

Height

The measurement of someone or something from head to foot or from base to top.

Weight

A measure of the heaviness of an object, often quantified using units like pounds or kilograms.

Positively Correlated

A relationship between two variables in which both variables move in the same direction.