Welcome back to Finance ABC. I’m your host, Emma Lai, and today we’re diving deep into an advanced topic in the world of finance: multi-factor asset pricing models. Now, I know that sounds pretty technical, but stick with me here because these models actually provide fascinating insights into how assets are valued and what drives returns in financial markets. Understanding these models can give us a better idea of the risks and rewards associated with different investments and help explain why some stocks perform better than others.

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