Please help me answer these 2 questions.Thank you.Info is in the photo

1 1 tments sample questions for exam 2 online If TAMUC Inc . is a small company with a low BE / ME ratio , what would you expect the HME and SMB coefficient signs to be in the Fama- French 3 - facor model ? Please also explain why Hint : remember that these are all risk factors . If the company becomes riskier due to size or BE /ME ratios , then they should cause an increase in the expected return for the company . In other words , higher risk requires a higher return If you're a long-term investor and willing to ride the ups and downs of the marke according to the 4 -factor model , what type of stocks would yield higher returns in the long -run ? Hint : remember that while risky portfolios are expected to have larger payoffs in the long-run , they could face significant volatility in the short-run . If you may need to use your funds soon , high-risk portfolios are NOT the best strategy . As for the momentum side , remember that there is a short -term momentum but it reverses in the long-term