easy · Principles of Finance risk-return-portfolio
In the context of the Fama-French Three-Factor Model, what does the 'HML' factor represent?
- The return differential between small-cap and large-cap stocks.
- The excess return of the market portfolio over the risk-free rate.
- The impact of momentum on stock returns over the past year.
- The return differential between high book-to-market (value) and low book-to-market (growth) stocks.
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