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26 You are trying to evaluate a fund's performance You run the so-called Fama French three-factor model as discussed in class and obtain the following
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You are trying to evaluate a fund's performance You run the so-called Fama French three-factor model as discussed in class and obtain the following estimates (where all numbers are monthly and all estimates are statistically significant) R(Fund) - f = 0.005 +0.9 (RM - rf) - 0.8SMB + 0.6HML + If you believe that the Fama French three-factor model is the true model of the world, does the fund manager seem to have any skill? O A. It depends on other factors O B. It depends on the reputation of the fund manager OC. Il depends on the historical performance of other competing fund managers, OD. No OE. Yes insert appropriate prompt, input type, and other instructions here Step by Step Solution
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