when multi factor models are used by investment managers to assess the risk of investments beta is an important factor that they can use 
fama french three factor modelone widely used multi factor model is the fama french three factor model the fama french model has three factors the size of firms book to market values and excess returns on the market in other words the three factors used are smb small minus big hml high minus low and the portfolio s return less the risk free rate of return smb accounts for publicly traded companies with small market caps that generate higher returns while hml accounts for value stocks with high book to market ratios that generate higher returns in comparison to the market 