- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Valuation
- Learning Module 21. 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 |
|---|---|
| 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? |