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

---

Definitions:

Numbers and Facts

Objective data and statements that are supported by evidence and can be verified.

Instructions

Comprehensive instructions on how to perform, use, or put together a specific task or item.

Proposals

Formal offers or plans submitted for consideration, acceptance, or action to others.

Investment Proposals

Documentation presented to potential investors or partners outlining the details, risks, and potential returns of a proposed investment.