The Fama and French Three Factor Model is a financial model that describes how stock prices are determined by three factors: market risk, size risk, and value risk.

. Fama and French Three Factor Model: Definition, Formula, and Interpretation What is a factor based model? A factor based model is a type of statistical model that is used to analyze the relationships between variables. Factor based models are used to identify the underlying factors that influence the behavior of the variables. The factors … Read more