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Question 9 The size effect suggests Fama-French 3 factor model is a wrong model Either market is likely inefficient or the CAPM model is not
Question 9
The size effect suggests
Fama-French 3 factor model is a wrong model | ||
Either market is likely inefficient or the CAPM model is not right | ||
Every small stock should outperform large stock in the long term | ||
A portfolio of small stock should outperform a portfolio of large stock next year |
According to the capital asset pricing model, a security with a _________.
zero alpha is a good buy | ||
positive alpha is considered underpriced | ||
positive alpha is considered overpriced | ||
negative alpha is considered a good buy |
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