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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 ________.


Definitions:

General Partners

Individuals who participate in the management of a partnership and have unlimited liability for its debts.

Securities Fraud

A type of serious white-collar crime that involves deceiving investors or manipulating financial markets.

Limited Partnership

A form of partnership consisting of at least one general partner, who manages the business and has unlimited liability, and one or more limited partners, who have limited liability.

Managerial Powers

The authorities vested in managers of an organization to make decisions, guide operational practices, and direct the workforce towards achieving the firm's objectives.

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