5) The Fama-French threef factor model and the Capital Asset Pricing Model (CAPM) both to be relevant when measuring the Expected Retun of an asset? a) The difference between low book-to-market returns and high book-to-market returns b) The difference between growth stock returns c) The expected return on the market. d) The difference between small-cap returns and large-cap returns and value stock returns e) The two models have no factors in common. In estimating value per share of common stock of a company, for which of the following is book value a reasonable approximation for evaluating the asset or liability? 6) I Excess cash. Il. Discontinued operations. Floating-rate debt. Employee stock options. IV. a) I and II only b) I and III only c) I. II, and IIl only d) IlI and IV only e) None of the above. major 7) In estimating and comparing value, the price-to-earnings (P/E) multiple has several flaws. Which of the following are among those flaws? I. It is in squared currency units Il. The P/E is affected by a company's capital structure. III. The earnings (net income) are calculated after non-operating items IV. The market measure of price usually has significant error a) I only b) I and Ill only. c) Il only d) IlI and IV only. e) None of the above