Science Meets Art - The Five Risk Factors - Show 9-1

Thursday, December 22, 2011 4,295 views

Five dimensions of risk and return are explained in this segment: Market, Size, Value, Term, and Default. Eugene Fama and Kenneth French identified these dimensions in their Five-Factor Model, which serves as a framework for designing investment portfolios. Mark Hebner presents the paintings that depict these five factors in Step 8 at www.ifa.com. He shows how a tilt toward small and value have historically been rewarded for their higher risk.

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