Which of the following factors were used by Fama and French in their multifactor model?
A) Return on the market index
B) Excess return of small stocks over large stocks
C) Excess return of high book-to-market stocks over low book-to-market stocks
D) All of the factors were included in their model.
E) None of the factors were included in their model.

Question

Quizplus · Accepted Answer

Fama and French's multifactor model includes three key factors: the return on the market index, the excess return of small stocks over large stocks, and the excess return of high book-to-market stocks over low book-to-market stocks. These factors are used to explain stock returns.

Which of the Following Factors Were Used by Fama and French