Q.2. While calculating requires return with Fama french method, the risk free rate that has been considered is the short term instead of long term g-sec.
What am I missing? And what should one do in exam?
Yes Fama French uses 3 month T bill as Rf.
Thank you so much. I checked in Wiley, where they hadn’t clarified this!
I think S2000 explained this somewhere.
Thank you
Is Fama French the only model that uses Short term rate instead of long term rate?
Questions like these to find the nuances are where I see value added in topic tests.