The Fama-French Three Factor Model Includes the Following Factors

question 45

Multiple Choice

The Fama-French three factor model includes the following factors:

• A)beta, expected return on the market, risk free rate of interest, a size factor, and a value factor.
• B)the market risk premium, a volume factor, and a size factor.
• C)beta, expected return on the market, risk free rate of interest, a volume factor, and a value factor.
• D)the yield on corporate bonds, a size factor, and a market factor.
• E)None of the above.

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Definitions:

Reinforcement

The desirable or undesirable stimuli that result from an organism’s behavior.

Genetic Mutations

Alterations in the DNA sequence that make up a gene, resulting in the gene functioning improperly or not at all.

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The concentration of substances in the nervous system that transmit signals between neurons, affecting mood, sleep, concentration, and more.

Family Pedigree Studies

Research methodology used in genetics to trace the inheritance of specific traits and diseases through generations within a family.