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Fama and French Claim That After Controlling for Firm Size

Question 16

Multiple Choice

Fama and French claim that after controlling for firm size and the ratio of firm's book value to market value,beta is ______________.
I.highly significant in predicting future stock returns
II.relatively useless in predicting future stock returns
III.a good predictor of firm's specific risk


A) I only
B) II only
C) I and III only
D) I, II and III

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