Question
You have noticed that stocks which are infrequently traded and have few shares outstanding have very high alphas, based on the Fama-French three factor model.
You have noticed that stocks which are infrequently traded and have few shares outstanding have very high alphas, based on the Fama-French three factor model. If an investor wanted to sell one of these stocks quickly, they would very likely have to sell at a significant discount. These stocks are termed
A) High Beta
B) illiquid
C) Low Beta
D) Large Cap
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Fundamentals Of Healthcare Finance
Authors: Paula H. Song, Kristin L. Reiter
4th Edition
1640553223, 978-1640553224
