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Fama–French three-factor model is used for asset pricing and portfolio management. The three factors are company size, company price-to-book ratio, and market risk. The traditional asset pricing model, known formally as the capital asset pricing model (CAPM) uses only one variable to describe the returns of a portfolio or stock with the returns of the market as a whole. In contrast, the Fama–French model uses three variables. Fama and French started with the observation that two classes of stocks have tended to do better than the market as a whole: (i) small caps and (ii) stocks with a high Book-to-market ratio (B/P, customarily called value stocks, contrasted with growth stocks). They then added two factors to CAPM to reflect a portfolio's exposure to these two classes.
Who sits adjacent to W?
Who amongst the following sit at the extreme ends of the rows?
Six persons F, G, H, I, J and K sit in a linear row and face in the north direction. I sits at an extreme end of the row. Only two persons sit between I...
Six girls T, U, V, W, X and Y are sitting around a circular table, facing the centre. Y is sitting third to the left of X. W is sitting to the immediate...
Which of the following combination is true?
How many persons are sitting between Om and Nitin?
Five person A, B, C, D and E are sitting around a circular table (not necessarily in the same order). B sits immediate left of A. C is on the left side ...
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Five persons are standing in a row facing north. B is standing at the second place to the right of S. Y is not next to L. If Q is standing second from t...
Six friends Q, N, X, S, R and T are sitting in a row facing north. N and S are adjacent to each other and neither of them is on extreme end. T is sittin...