The Fama-French three-factor model adds to the CAPM factors that reflect these empirical regularities:

A. Steady earnings and predictable investment patterns each earn higher returns.

B. Stocks earn higher returns that have high debt/asset ratios and low P/E ratios.

C. Large-cap returns lag small-cap stock returns and low book-to-mkt returns lag high book-to-mkt returns.

D. High-beta stocks earn negative alpha, on average, and low-beta stocks earn positive alpha.

A well-documented anomaly consistent with trader loss aversion is

A. buying homeowners insurance and also buying lottery tickets.

B. investing too little over ones lifetime due to mental accounting.

C. the tendency to sell winners too soon and ride losers too long.

D. post earnings announcement drift that leaves positive cumulative abnormal returns to harvest.