8. The Fama-French Three Factor Model is developed from the premise that the beta coefficient does not reflect the full risk story and that there are other factors that affect the returns of financial assets.

a. Certain

b. Fake

9. The Fama-French Three Factor Model was based on the fact that the beta coefficient did not reflect the complete history of risk, since there were other factors that affect the returns of financial assets such as the size effect of the firm and:

a. the effect of the value of the firm measured by the book-to-market ratio

b. the momentum effect

c. the effect of dividends

d. the effect of capital structure

10. The duration of a bond typically increases with an increase in: (1) Term to maturity; (2) Yield to maturity; (3) Coupon rate

a. 1 only

b. 1 and 2 only

c. 2 and 3 only

d. 1 2 and 3