Fama and French Claim That After Controlling for Firm Size

question 29

Multiple Choice

Fama and French claim that after controlling for firm size and the ratio of the firm's book value to market value, beta is:
I. Highly significant in predicting future stock returns
II. Relatively useless in predicting future stock returns
III. A good predictor of the firm's specific risk

• A) I only
• B) II only
• C) I and III only
• D) I, II, and III

Understand the concept and benefits of departmentalization.

Describe the impact of organizational structure on decision making and flexibility.

Recognize the challenges associated with different organizational structures.

Differentiate between the types of structures based on departmentalization criteria (geographic, product, customer).

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