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:

Factoring Transaction

The process where a business sells its accounts receivable (invoices) to a third party (factor) at a discount, in exchange for immediate cash.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards designed to ensure consistency, fairness, and accuracy in financial reporting and accounting practices in the U.S.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.

Factoring Transaction

A financial transaction where a business sells its accounts receivable to a third party at a discount to obtain immediate cash.