Which one of the following statements is correct with reference to Fama and French (1992) "The Cross-Section of Expected Stock Returns"? A.Fama and French find that beta is more important than size and book-to-market in determining the cross-section of expected returns. Fama and French use time series regressions in their analysis because the factors in the model of cross-sectional returns are return spreads across . portfolios. Fama and French estimate cross-sectional regressions using Fama-MacBeth's method. The coefficients on the factors ln(ME) and ln(BE/ME) can o c. be interpreted as the risk premiums on size and book-to-market respectively. Fama and French use Fama-MacBeth's method to do their analysis because the factors in the model of cross-sectional returns are return spreads o o. across portfolios