{ "media_type": "text", "post_content": "Fama French 3 factor model was better than its 5 factor model. Simply adding the factors doesn't improve results.", "post_id": "5e7e6c24b72f41002b9d92dd", "reply_count": 3, "vote_count": 8, "bowl_id": "599feb177c057d0010be0554", "bowl_name": "Financial Advisors" }

Fama French 3 factor model was better than its 5 factor model. Simply adding the factors doesn't improve results.

like
Posting as :
works at
You are currently posting as works at

I believe both models worked well for data before the 2008/9 crisis. After that 3 factor model had better results than the 5 factor model.

like

Agree; however, 10-12 years of data is a small sample size compared to the 80+ years prior to 2008/9 timeframe. Neither Fama nor French claim the premiums will show in every 10 year period. Time will tell. Personally, I like the 3 factor model because it is easier to explain and demonstrate.

I agree that 3 factor model performed better. But adding diverse factors does actually improve returns.

like

Additional Posts

Total comp for Senior Manager, healthcare consulting (revenue cycle, provider ops) in NYC at big 4?

like

When you've been on a project for over a year and your team showers you with gifts on your last day. Feeing loved af #itsthelittlethings ☺️

like

M and SM salary bands for Deloitte Digital in NYC? Thank you

like

Can anyone refer me for GCP - Data engineer role? Total exp - 5.6 Relevant - 3.2

like

PHL is a nightmare airport

like

Hello Everyone, I’m was trying to help some of our secondary RSP teachers determine what they can do with their student’s during LAB/ Study Skills Class. Some of my ideas included: Work on incomplete classwork or homework, work on goals, study for test and quizzes, work on projects, goal setting for the next semester, organize google classroom assignments or practice for the state exams. If they are other ideas I would love to hear them! Thanks everyone

like

Are they going to target Visa workers next?

Post Photo
like

How much to expect at an internal strategy role in industry (NYC with 3-5 years of experience)?

like

I have a offer from CGI 17.5 Lakh fixed and 50 k joining bonus North America shift. I have another offer from wipro-18 lakh of which 15.3 fixed Singapore shift. Both are project manager role. What will be my take home in wipro. Which is a safer bet for a lady employee.

Post Photo
like

What is reason for putting salary on MBA application? Is that something that can be left blank? Making around $120k total comp if that makes a difference

like

Posted this previously in another bowl but thought it'd make more sense here. Was watching world's most extraordinary homes in awe and for the first time in life I felt like I really wanted to be rich enough to own one of these. Did some quick math assuming $150k annually in index funds earning 10% annual returns, but figured even 25years is barely enough. With this as a life goal, what strategic tips are there that a 30 year old consultant could do to get there? Surely salary is not enough!

like

Raise your hand if your office is open for Presidents’ Day. 🙋🏻‍♂️

like

Hi mamas, how do you handle a sick child when you cannot take the days off? My son is 18 months, just started daycare and he’s been sick a lot. I just changed job, so I don’t have enough PTO to take, but I’m able to WFH. Husband cannot work from home or take time off since he has a big deadline at work right now. How do you handle a sick child but also get the work done? We don’t have any families live close by neither.

like

Anyone doing management masters at Harvard Extension School? Can it take you places? What are the career opportunities?

like

Any insight on kpmg’s FDD practice? Specifically the healthcare or core industries.

like

Who here is following Disha Ravi’s case? Is our union that fragile that this insecure govt can’t tolerate a small time activist to charge her with sedition? Picked up from Blru and taken to Delhi without following protocol? What a bunch of effing clowns in power? Is this what this PM and his 56 inch chest stand for?

like

So I’m looking for entry level design gigs, I got a request from a company to do an ‘assignment’. I know how these can go, but I’m really desperate for work. I don’t want to get burned. Is there a way I can advise them that the work may not be used on their website/social channels, but I’m interesting in the role without sounding like a dick lol.

PwC'ers - can we expense a monthly gogo inflight subscription?

like

What are common exists for healthcare strategy folks? Specifically managers - possible to go into corporate dev for a provider?

like

Newbie here: what are the implications of going with a mortgage broker versus just going to a bank? Inclined to go to credit union for mortgage- thoughts? Do realtors get comped for broker referrals?

likehelpful

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
Download Fishbowl to see what others are saying
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the Fishbowl app

Get realtime notifications and see
what's happening in your industry
from the palm of your hand.

For account settings, visit Fishbowl on Desktop Browser or

General

Legal