Understanding the Three-Factor Model
Eugene Fama and Kenneth French are two renowned economists who have significantly influenced the field of finance through their research. They are best known for their three-factor model, which has helped investors and portfolio managers better understand and predict stock returns. As Benjamin Graham once said, “To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.” The insights from Fama and French’s research can help investors in their quest for superior results.
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