The examination of Fama-French Model during the Covid-19

新冠疫情期间对Fama-French模型的检验

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Abstract

This paper evaluates the performance of Fama-French models on US stock markets during the selected events by studying the R (2) of the models. We find that the influence of Dotcom bubble to the R (2) of growth model is statistically significant. The R (2) of growth portfolios decreases rapidly during the Financial crisis of 2008. The latest Covid-19 outbreak drop has led to a substantial in the R (2) during this event. Furthermore, we find that all of the beta model parameters are insignificant in the GMM model.

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