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:

Public Opinion

Public opinion is the collective attitudes, beliefs, and perceptions of the general public or specific demographic groups on various issues, often measured through polling and surveys.

Capricious

Characterized by unpredictable changes of mood or behavior, often leading to sudden and seemingly reasonless actions or decisions.

John Dewey

An American philosopher, psychologist, and educational reformer whose ideas have been influential in education and social reform.