The Fama and French three factor model does not use ___ as one of the explanatory factors.
A)industrial production
B)inflation
C)firm size
D)book-to-market ratio
E)both A and B

Question

Quizplus · Accepted Answer

The Fama and French three factor model uses firm size, book-to-market ratio, and excess market return as the three explanatory factors, but it does not include industrial production or inflation as factors.

The Fama and French Three Factor Model Does Not Use