Assuming risk factors and sensitivities are always positive, which of the following is true?

Select one:

a.

The expected return from the Carhart 4-factor model will always be equal to that from the Fama-French 3-factor model.

b.

The expected return from the Carhart 4-factor model will always be greater than that from the Fama-French 3-factor model.

c.

The expected return from the Carhart 4-factor model will always be less than that from the Fama-French 3-factor model.

d.

The expected return from the Carhart 4-factor model could be greater than or less than that from the Fama-French 3-factor model.