Learn about the Fama French Three Factor Model, its formula, and how it enhances portfolio analysis by incorporating size and value risks beyond CAPM.

Reviewed by Thomas Brock Fact checked by Suzanne Kvilhaug CAPM: An Overview Many investors use the capital asset pricing model (CAPM) as a way to estimate the potential return of a stock or other ...

This paper combines Tobin's Q theory of real investment with the capital asset pricing model to produce a new and relatively simple procedure for the valuation of real estate assets using the income ...