The Fama French 3 factor model is a multi factor models that includes two additional risk factors beyond the market risk factor in the CAPM model These additional factors account for A) Firm specific risk that the CAPM does not measure B) Sensitivities of an assets return related to its size and its ratio of book to market value C) A and B are both correct

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Question: The Fama-French 3-factor model is a multi-factor models that includes two additional risk factors beyond the market risk factor in the CAPM model. These additional

The Fama-French 3-factor model is a multi-factor models that includes two additional risk factors beyond the market risk factor in the CAPM model. These additional factors account for__________.

A) Firm-specific risk that the CAPM does not measure.
B) Sensitivities of an assets return related to its size and its ratio of book-to-market

value.
C) A and B are both correct

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