The Four-Factor Model Used to Construct Performance Benchmarks for Mutual

question 49

Multiple Choice

The four-factor model used to construct performance benchmarks for mutual funds uses the three Fama and French factors and one additional factor related to ________.

• A) the tenure of the fund manager
• B) momentum
• C) fees
• D) the age of the fund manager

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Definitions:

Coastline Uplifted

The rise of landmasses relative to the sea level, often caused by tectonic activities such as earthquakes or isostatic adjustments, leading to changes in coastal landscapes.

Subsided

The process by which an area of land sinks to a lower level than the surrounding land area, often due to natural geological processes or the extraction of underground resources.

1964 Alaskan Earthquake

A powerful seismic event that struck Southcentral Alaska on March 27, 1964, also known as the Great Alaskan Earthquake, the second most powerful earthquake ever recorded.

Plate Tectonics

The scientific theory explaining the movement of the Earth's lithosphere through processes such as spreading, subduction, and collision, which results in the formation of mountains, earthquakes, and volcanoes.