Fama and French have suggested that many market anomalies can be explained as manifestations of ________.
A) regulatory effects
B) high trading costs
C) information asymmetry
D) varying risk premiums

Question

Quizplus · Accepted Answer

Fama and French suggest that anomalies such as the value and size effects can be explained by varying risk premiums, specifically the exposure to systematic risk factors other than the market (e.g. value stocks tend to have higher exposure to the value factor).

Fama and French Have Suggested That Many Market Anomalies Can