# Discuss the differences between CAPM and Fama-French 3-factor models and how it affects your analysis. Maximum length of the report is

Discuss the differences between CAPM and Fama-French 3-factor models and how it affects your analysis. Maximum length of the report is. [ad_1]

In worksheet “Task 1” of the Excel file provided, model a two-asset portfolio and examine the risk and return characteristic of a two-asset portfolio – using the data provided. In this worksheet, evaluate the portfolio’s return, risk and utility of the following three scenarios, assume the risk-aversion coefficient to be 6: i) When correlation coefficient between the two assets is -1.0 ii) When correlation coefficient between the two assets is 0.5 i) When correlation coefficient between the two assets is 1.0 Answer the questions in the case study quiz on iLearn using the result from the above analysis. 3.

Use the information on worksheet “Task 2”, write a report addressing the following: 1. Using CAPM model to evaluate each stock. Rank their performance by alpha and information ratio(IR). IR is defined by (Excess Return)/(Tracking Error in SD) 2. Repeat the above by using Fama-French 3-factor model. Note: You can create extra worksheets for your analyses. You can obtain the risk free rate, market risk premium, and the Fama-French 3 factors from French Library

Write a report on the findings you obtained in Task 2. Explain briefly the two models you used. Discuss the differences between CAPM and Fama-French 3-factor models and how it affects your analysis. Maximum length of the report is 2 pages, excluding cover page, content page, appendix or references.

### Submission

#### “WE’VE HAD A GOOD SUCCESS RATE ON THIS ASSIGNMENT.PLACE THIS ORDER OR A SIMILAR ORDER WITH PRO DESK WRITERS AND GET AN AMAZING DISCOUNT”

Discuss the differences between CAPM and Fama-French 3-factor models and how it affects your analysis. Maximum length of the report is

#### “WE’VE HAD A GOOD SUCCESS RATE ON THIS ASSIGNMENT. PLACE THIS ORDER OR A SIMILAR ORDER WITH ESSAYS MARKET AND GET AN AMAZING DISCOUNT”

Post your order to get it done from scratch by our writers today

Write My Paper Now!

#### CLIENT 24376

Literature
The advantages of dropping out of college vs not.

"This is great!!! thank you guys so much"