How to allocate portfolio weight based on the FF3F model

Selecting the correct stocks and funds is essential for portfolio management allocation. In order to reduce risk of portfolio, it better diversify assets select within more than one sector. Another step would be setting with firefighter case or without it. The illustrates that we suppose there a who has 25 years service as will retired in Florida. Florida government gives two choices. He takes lump-sum payout invests his nest egg lump sum supporting him throughout retirement. he pension benefit supplementing benefit. this case, compared those finally selected which maintained made weight precisely equal 71%. Sharpe ratio scenario relatively higher another. Moreover, choosing financial model. Comparing pros cons between CAPM model Fama French Three-Factor model, found related reality includes market risk, making portfolios accurate reliable.