Question: w Select all that apply. The value factor is: 1. a factor of both the Fama French Three Factor Model and the Arbitrage Pricing Model

w Select all that apply. The value factor is: 1. a

w Select all that apply. The value factor is: 1. a factor of both the Fama French Three Factor Model and the Arbitrage Pricing Model ll. constructed from a long position in stocks with a high book-to-market ratio and a short position in stocks with an unusually low book-to-market ratio III. constructed from a long position in small-cap stocks and a short position in small-cap stocks IV. has several economic interpretations, including that it represents compensation for firm distress, since high book-to-market value reflect low market price V. may be explained by behavioral factors in that the value premium consists of investor over-extrapolation of past growth rates into the future

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