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
E) All of the above.

Question

Quizplus · Accepted Answer

Fama and French found that both size and book-to-market value were important variables in explaining return during the period of 1963 to 1990. Beta was not found to be as important. Therefore, the best choice is D, which includes only the variables of size and book-to-market value.

Which of the Following Variables Were Found to Be Important