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Briefly explain the Fama-French three-factor model.
Equilibrium Interest Rate
The interest rate at which the quantity of funds demanded equals the quantity of funds supplied.
Price Level
The average of the current prices of goods and services produced in the economy, often used as a measure to track inflation or deflation.
Money Supply
The collective sum of all monetary resources in an economy, including cash, coins, and savings and checking account balances, at a particular time.
Interest Rates
The expense associated with taking out a loan or the profit from an investment, presented as a percentage of the initial amount.
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