The original three-factor portfolio model of Fama and French (1993, 1996) is formulated in the form where
Question:
The original three-factor portfolio model of Fama and French (1993, 1996) is formulated in the form
where SMB indicates the market capitalization spread (?small minus big?), and HML is the spread in the book-to-market ratio (?high minus low?). Show that this model is empirically indistinguishable from a three-factor APT-model, if the restriction
holds, and
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
The original threefactor portfolio model of Fama and French 1993 1996 can be rewritten as Rp Ro 1RMP ...View the full answer
Answered By
Dulal Roy
As a tutor, I have gained extensive hands-on experience working with students one-on-one and in small group settings. I have developed the ability to effectively assess my students' strengths and weaknesses, and to customize my teaching approach to meet their individual needs.
I am proficient at breaking down complex concepts into simpler, more digestible pieces, and at using a variety of teaching methods (such as visual aids, examples, and interactive exercises) to engage my students and help them understand and retain the material.
I have also gained a lot of experience in providing feedback and guidance to my students, helping them to develop their problem-solving skills and to become more independent learners. Overall, my hands-on experience as a tutor has given me a deep understanding of how to effectively support and encourage students in their learning journey.
0 Reviews
10+ Question Solved
Related Book For 
Question Posted:
