Fama-French Three-Factor Model

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Definition: Fama-French Three-Factor Model


Fama-French Three-Factor Model


Full Definition of Fama-French Three-Factor Model


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.


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Definition Sources


Definitions for Fama-French Three-Factor Model are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 21st November, 2021 | 0 Views.