Question: a) Define and explain arithmetic and geometric mean, and in what circumstances are they used? b) Define and explain skewness and kurtosis coefficients, and what
a) Define and explain arithmetic and geometric mean, and in what circumstances are they used?
b) Define and explain skewness and kurtosis coefficients, and what are they used for?
c) Define and explain the Fama and French (1993), Pastor and Stanbaugh (2003) models, as well as the interpretation of a chosen coefficient using a numerical example.
d) Explain how one could adjust beta to account for leverage.
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