In L1, we saw CAPM
Then Fama French added size and book value
Then Pastor Stambaugh added illiquidity
Ibotsen Chen looks at earnings growth, inflation,
I don’t know if this goes beyond the scope of the exam, but it’s confusing to me whether equity valuation people always use the most granular models IRL i.e. using Pastor Stambaugh and Ibotsen Chen because they capture the most information.