The magneto-optical response of nanometric Fe particles with varying size a
nd shape has been studied, both in sputtered single layers and pulsed laser
deposited nanocomposite films. The shape of Fe nanoparticles was controlle
d by varying growth conditions. An effective medium theory for arbitrary pa
rticle shapes has been derived and used to simulate the experimentally meas
ured magneto-optical transverse Kerr spectra. The simulations show that the
transverse Kerr magneto-optical spectra depend on the particles shape and
correlate well with the experimentally determined spectra. From this result
, it is deduced that Fe nanoparticles with dimensions down to 3-4 nm keep t
heir bulk magneto-optical constants. On the other hand, large magneto-optic
al signals are reported in multilayered structures due to interferential ef
fects.