pastor stambaugh as a pastor drank but was not supposed to indulge ( add liquid- ity premium)
he would tell the story of fama french, french catholic priest. when fama french talked about the trinity (3 pieces) he would make the sign of the corss. they would refer to the stock diverfication model… up and down refers to large cap/small cap (small cap add on). left to right would be growth/value (value add one) and center would be the regular add on (market risk premium)
there are the three add ons to the risk free rate with fama french. with pastor stramang model one adds a liquidy factor. also.