Multiple Choice
To develop the set of efficient portfolios, the one-factor model does not require the estimation of direct covariances between each security. Instead, it requires the estimate of the
A) variance for each security.
B) value of the factor.
C) riskfree return.
D) expected return for each security.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: For a one-factor model, an analyst finds
Q9: Diversification leads to an averaging of _
Q10: An analyst has a two-factor model to
Q11: If a two-factor model used the growth
Q12: For a one-factor model, an analyst finds
Q14: Time series multiple-factor models<br>A) use variables with
Q15: In the time-series approach to estimating factor
Q16: Factor models are a return-generating process that
Q17: The variance of a security's return will
Q18: Sector-factor model is a special kind of