FAMA AND FRENCH THREE FACTOR MODEL
A factor model that expands on the capital asset pricing model (CAPM). Both models aim to measure portfolio performance and predict future returns. However, the CAPM uses one factor - the market risk, whereas Fama and French three-factor model adds such factors as company size and value. By including these two factors, the model adjusts for the outperformance tendency, which makes it easier to evaluate manager performance.
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Tit for Tat
Game theory mechanism subject to a payoff matrix similar to a prisoner’s dilemma. Anchored on the concepts of retaliation and altruism, this ...
Nonsegregated Disclosures
Information that must be presented legally anywhere in a lease agreement. These are required by the Federal Reserve Board Regulation M. The lease a ...
Product Line
A series of related products which are all made or manufactured by the same company.
Behavioral Economics
The scientific study on how the mind thinks and how each person reacts as it relates to the process of decision making in economics of individuals ...
Infant-Industry Theory
A theory stating the emerging domestic industries must be protected against foreign competition until they become established and mature. In econom ...
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Ethical Investing: Corporate Governance
It is important for ethical investors to determine how companies manage themselves and their relations with investors and stakeholders.
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Student Loans: Repayment in Times of Financial Difficulty
One day, you are in the middle of a financial hardship. Unfortunately, you still have student loans to pay. What will you do? In times like these, ...
Principles of Trading: Record Keeping and Taxation
It is imperative for every trader to maintain a precise, organized, and latest trading-related records. Hence, traders should keep both hard and di ...
Student Loans: Private Loans
Majority of students consider federal loans as their first borrowing choice. But this loan may not be able to shoulder an entire tuition, not to me ...
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