Why are these anomalies now considered to be risk factors ?

The size and generic cialis tadalafil 2.5mg value pharmacy online anomalies violate the http://sildenafilcitrate2treated.com/ predictions of the CAPM. However, if the market factor is augmented with two additional risk factors called HML and SMB, the anomalous returns can be explained to large extent by betas on these new factors. HML is the difference in returns on portfolios with high book-to-market and low book-to-market ratios;

SMB is the difference in returns on portfolios of small stocks and large stocks. These factors were suggested by Fama and French, and the risk model wholesale pharmacy online with the tadalafil 20mg market factor, HML, and SMB is known as the Fama-French 3-factor model.


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