The new fama-french model replaces the existing five-factor model.  The new five-factor fama-french model includes  profitability and investment factors. Profitability factor: Robust minus weak operating profit (RWA )= (SR + BR) / 2 – (SW + BW) / 2 = [(SR – SW) + ( BR – BW)] / 2  Investment factor:  Conservative minus aggressive Investment […]