Which of the following variables were found to be important in explaining return based upon a study of Fama and French (covering the period 1963 to 1990)?
A) Size
B) Book-to-market value
C) Beta
D) Choices a and b only
E) All of the above

Question

Quizplus · Accepted Answer

Fama and French's study found that both size and book-to-market value were important variables in explaining return, but beta was not found to have a significant impact. Therefore, the best choice is D, which includes only choices a and b.

Which of the Following Variables Were Found to Be Important