The Fama and French evidence that high book-to-market firms outperform low book-to-market firms even after adjusting for beta means that ________.
A) high book-to-market firms are underpriced or the book-to-market ratio is a proxy for a unique risk factor
B) low book-to-market firms are underpriced or the book-to-market ratio is a proxy for a systematic risk factor
C) either high book-to-market firms are underpriced or the book-to-market ratio is a proxy for a systematic risk factor
D) high book-to-market firms have more post-earnings drift
Correct Answer:
Verified
Q38: In a 1988 study, Fama and French
Q39: Proponents of the EMH think technical analysts
Q40: Jaffe found that stock prices _ after
Q41: If the U.S. capital markets are not
Q42: The term random walk is used in
Q44: Stock market analysts have tended to be
Q45: The effect of liquidity on stock returns
Q46: According to the semistrong form of the
Q47: Most tests of semistrong efficiency are _.
A)
Q48: According to results by Seyhun, _.
A) investors
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents