The Fama French model I) is a useful tool for benchmarking performance against a well defined set of factors.
II. premia are determined by market irrationality.
III. premia are determined by rational risk factors.
IV. is the reason that the premia is unsettled.
V. is not a useful tool for benchmarking performance against a well defined set of factors.
A) I only
B) V only
C) I and II
D) I and IV
E) II and V

Question

Quizplus · Accepted Answer

The Fama French model is a useful tool for benchmarking performance against a well defined set of factors, and the reason for the premia is unsettled.

The Fama French Model I) Is a Useful Tool for Benchmarking