Concept
Fama-French Three-Factor Model 0
The Fama-French Three-Factor Model is an asset pricing model that expands on the Capital Asset Pricing Model (CAPM) by adding two additional factors, size and value, to better explain stock returns. It suggests that smaller companies and those with high book-to-market ratios tend to outperform the market, providing a more comprehensive understanding of risk and return in financial markets.
Relevant Degrees