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In the realm of data analysis, encountering missing values is a common challenge that analysts face. Whether you’re working with cryptocurrency data, conducting rolling regressions, or exploring Gaussian random variables, addressing missing values is crucial for accurate analysis. Additionally, mastering interpolation techniques can enhance your ability to fill in missing data points effectively. Understanding Missing […]

In this blog, we are going to introduce you to one of the most famous models in the asset pricing model. Back then in 1993 two researchers (Fama and French) in finance created a model, which proved that three risk factors (market risk premium, size, and value) can statistically and significantly explain the fluctuations of

What exactly Fama-French three-factor model is? Before introducing multi-factor asset pricing models, the Capital Asset Pricing Model (CAPM) played a significant role in explaining the changes in stock returns. According to CAPM (this model has only one independent variable, which is market premium i.e. market return minus risk-free rate), the market premium can explain the