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Briefly Explain the Fama-French Three-Factor Model

question 9

Essay

Briefly explain the Fama-French three-factor model.


Definitions:

Combine

The process of adding or merging various elements or mathematical expressions together.

Simplify

The process of altering an expression or equation to make it easier to work with, often by combining like terms or applying mathematical operations.

Multiply

The mathematical operation of scaling one number by another, representing repeated addition.

Simplify

The process of making an algebraic expression or equation easier to understand by reducing it to its most basic form.

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