Fama and French Suggest a Three-Factor Model Approach

question 151

Multiple Choice

Fama and French suggest a three-factor model approach. Which of the following is NOT included in their approach?

• A) excess returns to a broad market index
• B) return differences between small-cap and large-cap portfolios
• C) return differences between industry characteristics
• D) return differences between value and growth stocks
• E) return differences between foreign stocks

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Definitions:

Interphase

The phase of the cell cycle where the cell prepares for division by replicating its DNA and increasing in size.

Chromosomes

Thread-like structures located within the nucleus of animal and plant cells, made of protein and a single molecule of deoxyribonucleic acid (DNA).

Cell Cycle

The series of phases that a cell goes through from one division to the next, including interphase and mitosis.

Henrietta Lacks

She was an African American woman whose cancer cells were the source of the HeLa cell line, the first immortalized human cell line and one of the most important in medical research.