A factor model expanding upon the capital asset pricing model (CAPM). This model adds both value and size factors as well as market risk. This model helps to accommodate for the tendency of stocks to outperform, making it more accurate in determining the performance of managers.
Related information about Fama-French three-factor model:
- Fama–French three-factor model - Wikipedia, the free encyclopedia
In asset pricing and portfolio management the Fama-French three factor model is a model designed by Eugene Fama and Kenneth French to describe stock ...
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A factor model that expands on the capital asset pricing model (CAPM) by adding size and value factors in addition to the market risk factor in CAPM. This model ...
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Nov 22, 2012 ... The Fama-French Three Factor Model is used to explain differences in the returns of diversified equity portfolios. It's a model that compares a ...
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The Fama-French Three Factor Model explains the risk-return of equity portfolios. Portfolio Solutions employs the Fama-French Model to build portfolios.
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Fama and French Three Factor Model. CAPM uses a single factor, beta, to compare a portfolio with the market as a whole. But more generally, you can add ...
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The first risk factor in the Fama/French Three-Factor Model is the amount of exposure to the overall stock market or the market risk factor. Exposure to this factor ...
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Fama/French Three Factor Model. Joel D. Bickford. This article discusses the Fama/French Three-Factor Model and its importance to serious investors without ...
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Jan 13, 2010 ... I'll be blunt: beginners may want to skip this post. I realize that many people in the investment industry look at the capital markets in a CAPM ...