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Five risk factors I use to build my portfolio
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The Fama French Five-Factor Model by investment researchers Eugene Fama and Kenneth French is an asset pricing model that seeks to explain expected stock returns using five key risk factors. They are market beta, company size, relative price, gross profitability, and investment. Some investors may consider gaining exposure to these factors as part of their investment plan in hopes of outperforming the broader market. In this webinar, Ben Felix from PWL Capital shares why he uses the Fama French Five-Factor Model as one of his stock selection criteria for his own portfolio. He'll explain each of the five factors identified, some of the model's potential advantages and shortcomings, and its historical performance against index benchmarks.