The Fama-French 3-factor model is a multi-factor models that includes two additional risk factors beyond the market risk

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answerhappygod
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The Fama-French 3-factor model is a multi-factor models that includes two additional risk factors beyond the market risk

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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 asset’s return related to its size
and its ratio of book-to-market
value.
C) A and B are both correct
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