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Question
Which one of the following combinations will tend to produce the highest rate of return according to the Fama-French three-factor model? Assume beta is constant in all cases.A. large market capitalization and high book-to-market ratio
B. large market capitalization and low book-to-market ratio
C. small market capitalization and high book-to-market ratio
D. small market capitalization and a book-to-market ratio of 1.0
E. small market capitalization and a low book-to-market ratio
Answer
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Related questions
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Q:
Which one of the following statements regarding an original issue $25,000 GNMA bond is correct?
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B. advantage; disadvantage
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Briefly outline and discuss Porter's Five Forces and their use.
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If wages grew 3.15 percent in 2013, but inflation was 2.75 percent, what was the approximate real increase in wages?
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Q:
Assume there are 475 million people in the United States, 175 million of which make up the labor force. If 16 million are unemployed, what is the unemployment rate?
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An analyst gathered the following year-end price level data for an economy. What is the economy's annual inflation rate for 2012?A. 3.22%B. 3.42%C. 3.68%D. 3.87%E. 3.92%
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Assume the inflation rate in 2012 is 2.1 percent. If the nominal GDP grew 3.2 percent and nominal wages grew 2.6 percent, what are the approximate real growth rates of GDP and wages?
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Q:
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B. accept the call; they have no other choice
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D. convert their bonds; the conversion price exceeds the call price by $12.90
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Q:
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