TheFamaFreedom3FactorModel.docVIP

The Fama Freedom 3 ? Factor Model Submitted by: Scott Gavlick Todd Hoskin Edward Kim EXECUTIVE SUMMARY In deference to our name’s sake, Fama and Freedom, we have chosen to approach stock selection from a value-oriented, technical basis – the FAF 3 ? Factor Model. Four factors were analyzed, two fundamental and two technical in an attempt to capture differing characteristics and potentially differing market signals. First the factors were analyzed independently and then on a combined and scored basis. These factors included Operating Income/Enterprise Value, Operating Incom