Fama-French Model Outperforms CAPM in Predicting Stock Prices.
Asset pricing is crucial for financial markets. The CAPM and Fama-French models are compared in this study. The Fama-French model is found to be more effective, as it considers more factors influencing stock prices. The CAPM model assumes a perfect market, which is unrealistic. While the Fama-French model is better, both have limitations. Further research is needed to improve asset pricing models.