Asked by
Cassidy Spruill
on Oct 20, 2024
Verified
Which of the following variables do Fama and French claim do a better job explaining stock returns than beta?
I. Book-to-market ratio
II. Unexpected change in industrial production
III. Firm size
A) I only
B) I and II only
C) I and III only
D) I, II, and III
Book-To-Market Ratio
A financial valuation metric comparing a company's book value to its market value, often used to identify undervalued stocks.
Industrial Production
A measure of the output of the industrial sector of the economy, encompassing manufacturing, mining, and utilities.
Firm Size
A measure that typically reflects a company's scale of operations, often indicated by its total revenue, assets, or number of employees.
- Acquire an understanding of the evaluations and substitutes for the Capital Asset Pricing Model, encompassing models based on several factors.
Verified Answer
BW
Learning Objectives
- Acquire an understanding of the evaluations and substitutes for the Capital Asset Pricing Model, encompassing models based on several factors.