The Fama-French ModelI) Is a Useful Tool for Benchmarking Performance

Multiple Choice

The Fama-French modelI) is a useful tool for benchmarking performance against a well-defined set of factors.II) premia are determined by market irrationality.III) premia are determined by rational risk factors.IV) is the reason that the premia are unsettled.V) is not a useful tool for benchmarking performance against a well-defined set of factors.

A) I only
B) V only
C) I and II
D) I and IV
E) II and V