Answer anyone question
Question 1: Fama and French (1993) have included aSize factor in their 3-factor model. Survey the most recentliterature and discuss whether the Size factor is still present infinancial markets (in the US and elsewhere). Using the Methodologyof Fama and MacBeth (1973), test and discussion possible economicreasons why Size should be a priced factor. Requires a largeliterature base and a simple regression analysis. If you are fullyprepared, I hope to write this question.
Question 2: Carhart (1997) advocated momentum as another factor.Survey the most recent literature and discuss whether the momentumfactor is still present in financial markets (in the US andelsewhere). Using the methodology of Fama and MacBeth (1973), testand discuss possible Economic reasons why Size should be a pricedfactor. Requires a large literature base and a simple regressionanalysis.
