Question: Question 21 (2.5 points) When analysts adjust returns for risk in order to evaluate portfolio manager performance, Today's conventional model is the Fama-French 3 factor

Question 21 (2.5 points) When analysts adjust returns for risk in order to evaluate portfolio manager performance, Today's conventional model is the Fama-French 3 factor model with factors representing market returns, firm size, and value Today's conventional model is a five-factor model: Fama French factors (Market, SMB, HML) plus a liquidity factor and a momentum factor Today's conventional model is a 4-factor model: Fama-French factors (Market, SMB, HML) plus momentum factor The single-factor Capital Asset Pricing model is most frequently used due to its ease of use

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