1- Eugene Fama, Sr. (Nobel prize winner in economics) and Kenneth French published a paper in 1992, which over the past 23 years as easily been the most influential academic paper in the field of investments. What two risk factors did Fama and French identify in this paper, other than the basic risk of the market itself (market risk)? Describe these two risk factors.

2- What is the (Fama-French) three-factor model? Has the three-factor model been tested in both U.S. and overseas markets, and if so, what is the result?

3- Describe the momentum effect in your own words. Give an example, in your own words.