问题如下：
An analyst wants to account for financial distress and market-capitalization as well as market risk in his cost of equity estimate for a particulartraded company. Which of the following models is most appropriate for achieving that objective?
选项：
A.The capital asset pricing model (CAPM).
B.The Fama French model.
C.A macroeconomic factor model.
解释：
B is correct.
The Fama French model incorporates market, size, and value risk factors. One possible interpretation of the value risk factor is that it relates to financial distress.
FFmodel 怎么能显示出financial distress？谢谢
