- CFA Exams
- CFA Level I Exam
- Study Session 9. Equity Valuation (1)
- Reading 25. Return Concepts
- Subject 4. The required return on equity - other models
CFA Practice Question
The neutral value for both the size and value betas in the Fama-French model is:
A. 1
B. 0
C. -1
Explanation: The neutral value is 1 for the market beta.
User Contributed Comments 1
User | Comment |
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AG09429 | The explanation says: The neutral value is 1 for the market beta. I chose A, where the market beta is 1, the answer is B where it is 0. A mistake by me? |