HML portfolio
R portfolio
subtracted portfolio
ML portfolio
✅ The correct answer is A.
A high portfolio return is subtracted from low portfolio return to calculate HML portfolio. HML is one of three factors in the original Fama and French’s Three-Factor model, which is often used to evaluate a portfolio manager’s returns.
A high portfolio return is subtracted from low portfolio return to calculate HML portfolio. HML is one of three factors in the original Fama and French’s Three-Factor model, which is often used to evaluate a portfolio manager’s returns.