Question

Fama and French have suggested that many market anomalies can be explained as manifestations of ____________.A. regulatory effectsB. high trading costsC. information asymmetryD. varying risk premium

Answer 1

Answer: varying risk premium

Explanation: According to fama and French, risk premiums have a great effect on the Market. Therefore when the risk premium is varying with time it has diverse effect on the market and may result in market anomalies.