Fama and French (1988)found that the return on the aggregate stock market _________
A) is higher when the dividend yield is high
B) is lower when the dividend yield is high
C) is unrelated to the dividend yield
D) is higher when bank failures are high
E) is unrelated to the economy

Question

Quizplus · Accepted Answer

Fama and French (1988) found that there is a positive relationship between the dividend yield and future stock market returns, meaning returns tend to be higher when the dividend yield is high.

Fama and French (1988)found That the Return on the Aggregate