Interview Question: Influential Factors

Sample Question #270 (finance – portfolio theory)
 
Describe the Fama-French factor model. What’s wrong with it as an investment tool?
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One Response to Interview Question: Influential Factors

  1. Brett says:

    ANSWER
     
    For a quick overview of the model, see http://en.wikipedia.org/wiki/Eugene_Fama#Fama_and_French_Three_Factor_Model.
     
    The model is an example of curve-fitting, and is not a tool for forward-looking investment.

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