Which of the following statements is most likely correct about then Fama-French three factor model? 1. The model is based on the assumption that small firms are inherently riskier than large firms and hence command lower risk premium. II. Value firms, which have high book-to-market equity ratios, are considered to be riskier firms than the growth firms with low book-to-market equity ratios. The Fama-French model has performed worse than the CAPM empirically, meaning it has not predicted expected returns on individual assets better. III. I and II 1 O I, II, and