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CAPM, Fama French Three Factor, or five factor? Are you serious? They don’t work anymore but they did at one point. The foundation of modern finance is built on
by mruts 7y ago
CAPM, Fama French Three Factor, or five factor? Are you serious? They don’t work anymore but they did at one point. The foundation of modern finance is built on published Chicago school papers.
- DennisP 7y agoFrom what I've read, they don't work quite as well but they do still seem to work. Economists have spent a lot of time trying to figure out why. Generally, they come up with behavioral explanations, like recency bias, and structural ones, like agency issues.