Hou et al. (2015) developed a model that is very close to the Fama and French four-factor
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Hou et al. (2015) developed a model that is very close to the Fama and French four-factor model. Write the equation for their model. What is the theoretical foundation for their model? What did they use as the test assets to empirically test their model? What did they find?
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SOLUTION Hou et al 2015 developed a model that is similar to the Fama and French fourfactor model The equation for their model can be written as follo...View the full answer
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