Briefly Discuss How You Would Use the Fama-French Three-Factor Model

question 15

Essay

Briefly discuss how you would use the Fama-French three-factor model to estimate the cost of equity for a firm.

---

Definitions:

Self-control

The ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.

Compassion

A deep awareness of and sympathy for another's suffering, coupled with the desire to alleviate that suffering.

Subjective Well-being

An individual’s self-assessed happiness or satisfaction with life, including emotional reactions and cognitive judgments.

Subjective Well-being

An individual's self-assessment of their feelings and life satisfaction, reflecting a personal evaluation of their quality of life.