Question.2423 - DQ1Assessment Description Compare the capital asset pricing model with the Fama-French (FF) 3-factor model. Describe the function and impact of each risk factor. DQ2 Assessment Description Explain what is meant by the terms "efficient market" and "inefficient market" and describe any implications market efficiency might have on an investor's approach to investing.
Answer Below:
DQ xxxxxx Asset xxxxxxx Model xxxx is xxx foundation xx the xxxxxx portfolio xxxxxxxxxx to xxxxxxxx the xxxxxxxx rate xx return xx stocks xx that xxx adding xx stock xxx be xxxxxxxxxx well xxx Fama xxx French xxxxx model xxxxxx is xx analytical xxxxxx designed xx Eugene xxxx and xxxxxx French xx assess xxxxx returns xxxx method xx an xxxxxxxx feature xx comparison xx that xx CAPM x risk xxxxxx as xx adds xxxx risk xxx value xxxx This xxxxx reviews xxx performance xx small-cap xxxxxx The xxxx and xxxxxx three-factor xxxxx approached xxx measured xxxxxx returns xxxxxxxxxxxxxx and xxxxxxx the xxxxx stocks xxxx create xxxxxx and xxxx small-cap xxxxxx perform xxxx in xxxxxxxxxx to xxxxxxxxx stocks xxxx portfolios xxxx a xxxxx number xx small-cap xx value xxxxxx are xxxxxx than xxx ones xxxx large-cap xxx lower xxxx results xxxx is xxxxxxx the xxxxxxxxxxxx model xxxxx adjustments xxx values xxx performance xx small-cap xxxxxx This xx why xxx three xxxxxxxxxxxx is xxxxxxxxxx to xx better xxxx CAPM xxx Capital xxxxx Pricing xxxxx is x simple xxxxxxxx method xxxx evaluates xxx cost xx equity xxx CAPM xxxxxx reviews xxx rate xx return xxxxxxxx based xx the xxxxx of xxxx associated xxxx the xxxxxxxxxx It xxxx reviews xxx additional xxxxxxx the xxxxxxxxx can xxx more xxxx a xxxxxxxxx rate xx comparison xx market xxxx quot xxxxxxxx of xxxx and xxxxx Factor xxxxx quot xx The xxxxxxx price xx a xxxxx or xxxxx investment xx any xxxxx time xx an xxxxxxxxx Market xxxxxx The xxxxxx of xx efficient xxxxxx states xxxx if xxxxxxxxxxxx of xxx market xxxx the xxxx information xxxx price xxxxxxxxxxx between xxxxxxx will xxx avail xxxxxxx On xxx other xxxx an xxxxxxxxxxx market xx one xx which xxxxxx of xxxxxx swing xxxx sides xx market xxxxxxx According xx market xxxxxx the xxxxxxxxxx between xx inefficient xxxxxx and xx efficient xxxxxx depends xxxx how xxxxxxxx the xxxxxxxxx are xxx how xxxx the xxxxxxxxxxx is xxxxxxxxx to xxxx The xxxxxxxxxxx market xxxxxxxx due xx the xxxxxxxxxxxx of xxxxxxxxxxx information xxx slower xxxxxxxxx of xxx same xxxxx falls xx the xxxxxx during xxxxxx are xxxxxxxx that xxx equity xxxxxx is xx inefficient xxxxxx The xxxxxxxxxxx of xxx is xxxx investors xxxxxxx t xx able xx defeat xxx market xxxxxxx all xxxxxxxxxxx that xxxxx indicate xxxxxxxxx is xxxxxxxxx in xxx stock xxxxx It xx assumed xx EMH xxxx stock xxxxxx observe x random xxxx based xx the xxxxxxx day x news xxxxxx than xxxx moves xx the xxxxx and xxxxxxxx of xxxx upsurge xxx market xxxxxxx more xxxxxxxxx reducing xxxxxxx for xxx intervention xx above-market xxxxxxx The xxxxxxxxx market xxxxxxxxxx is xxxxxxx into xxxxx different xxxxxxxxxxxxxxx weak xxxxxxxxxxx and xxxxxx quot xxxxxxxxx amp xxxxxxxxxxx market xxxx n x ReferencesAnalysis xx CAPM xxx Three xxxxxx Model xxxxxxxxx March xxxx https xxx ukessays xxx essays xxxxxxxxx analysis-capm-factor-model- xxx text xxxxxx CAPM xxxxx is x book xx market xxxxx factor xxxxxxxxx amp xxxxxxxxxxx market xxxxxxxxx March xxxx https xxxxxxxxxxxx github xx text xxxxxxxxx finance x -behavioral-finance-and-market- xxxxMore Articles From Finance
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