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 large firms are inherently riskier than small firms and hence conumand higher risk premium. I1. Value firms, which bave heg hook-to-market equity ratios, are consudered to be riskuer firms than the growth firms with low book-to-market equity. ratios. III. The Fana-French model has performed better than the CAPM enpirically, meanang it has predicted expected returns on individual assets better. Which of the following is most likely a correct statement? I. The higher the market risk is projected to be, the higher the market risk premium. II. The lower the risk aversion of an average investor, the higher the market risk premium. III. The higher the beta, the higher the market risk premium. I I and