The Fama-French three-factor model seems to support the notion that higher returns can best be earned over time on:
A)large,growth stocks.
B)large,value stocks.
C)small,value stocks.
D)small,growth stocks.
E)the overall stock market.

Question

Quizplus · Accepted Answer

The Fama-French three-factor model suggests that higher returns can be earned over time on small, value stocks. This is because these stocks are considered riskier and less liquid, thus requiring a higher expected return to compensate for the additional risk.

The Fama-French Three-Factor Model Seems to Support the Notion That