What does the fundamental factor model intercept represent?

[archived_user]

Macroeconomic factor model intercept is risk free rate, but FMFM intercept is not?

 

[archived_user]

macro –> expected value without GDP surprises
Funda –> no economic interpretation

 

[archived_user]

It means … pretty much nothing.

 

[archived_user]

So much ado about nothing. Thanks.

 

[archived_user]

isnt the interpret in the fundamental model, the risk free rate?