Which of the following variables do Fama and French claim do a better job explaining stock returns than beta?

Which of the following variables do Fama and French claim do a better job explaining stock returns than beta? 



I. Book to market ratio
II. Unexpected change in industrial production
III. Firm size


a. I only
b. I and II only
C. I and III only
d. I, II and III


Answer: C. I and III only


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