Select all that apply. The value factor ist di a factor of both the Fama French Three Factor Model and the Arbitrage Pricing Model On constructed from a long position in stocks with a high book to market ratio and a short position in stocks with an unusually low book to market ratio Olli constructed from a long position in small-cap stocks and a short position in small-cap stocks DIV. has several economic interpretations, including that it represents compensation for firm distress, since high book-to-market value reflect low market price v. may be explained by behavioral factors in that the value premium consists of investor over-extrapolation of past growth rates into the future