The Fama-French Five-Factor Model is an extension of the original three-factor model developed by Eugene Fama and Kenneth French. It aims to explain stock returns by incorporating five factors: market risk, size, value, profitability, and investment. This model helps investors understand how different characteristics of stocks can influence their performance. The five factors are designed to capture various dimensions of risk. The market risk factor reflects overall market movements, while the size factor accounts for the tendency of smaller companies to outperform larger ones. The value factor focuses on stocks with high book-to-market ratios, and the profitability and investment factors consider a company's earnings and growth strategies.