Q707
A high portfolio return is subtracted from low portfolio return to calculate
A.
HML portfolio
AnswerB.
R portfolio
C.
subtracted portfolio
D.
ML portfolio
Answer: Option A
Solution
Answer: Option A
Solution:
A high portfolio return is subtracted from low portfolio return to calculate HML portfolio. HML is one of three factors in the original Fama and French's Three-Factor model, which is often used to evaluate a portfolio manager's returns.