About this document
Fama-French Three-Factor Model Overview by babar tanwri is a document available to read on EtoBox.
The Fama-French Three-Factor Model expands on the Capital Asset Pricing Model (CAPM) by adding two additional factors - size risk and value risk. It considers that small-cap and value stocks tend to outperform the market over the long run. The three factors are market risk, SMB (small minus big) which accounts for small cap outperformance, and HML (high minus low) which accounts for value stock outperformance. The model assumes market risk, small cap stock outperformance, and value stock outperformance impa
- Author
- babar tanwri
- Language
- EN