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Explain the Fama-French Three-Factor Model. Compare the APT with the CAPM

Explain the Fama-French Three-Factor Model.

Compare the APT with the CAPM

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Fama french three factor model is an asset pricing model which is developed on 1992.Which expands on the Capital Asset Pricing Model(CAPM)by adding value risk,size risk factors to the market risk factors.Fema French three factor model has three element that is size of th firm,books to market value and excess return on the market.fema french model was highligted that the investors must be ride out the extra short term velocity and periodic under performance that happens in a short period.

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