fama french three factor model

For decades, the prevailing wisdom said that market risk was the only thing that drove stock returns. But this theory had a blind spot: it couldn't explain why small-cap and value stocks consistently outperformed over the long run. Enter the Fama-French Three-Factor Model. Developed by Nobel laureate Eugene Fama and Kenneth French, this framework revealed that returns are driven by more than just the market. By accounting for the power of company size and value, it gave inve...