Impact of leverage risk liquidity risk and idiosyncratic risk on expected returns

Abstract

The Fama French Model which followed the CAPM has been widely debated by newlinevarious researchers on issues like whether value and size premiums are caused by the newlineunderlying risk factors of firms falling within these categories or due to the incorrect newlineextrapolation of past earnings growth by the market and subsequent correction of the newlinemispricing errors newline newline