Multiple Choice
A two factor model for the return for Security X is 2% - 3(CPI) + 2(GDP) . If you forecast CPI to be 2% and GDP to be 6%, the expected return for Security X is
A) 20%.
B) 12%.
C) 2%.
D) 8%.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
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
Q19: The one-factor model's sensitivity term relates to
Q20: A cross-sectional forecasting model<br>A) uses intuition and
Q22: To find the variance between two securities
Q23: Factor model relationships are built on the
Q24: A _ process is a statistical model
Q25: In a factor model any portion of
Q26: One limitation on factor models is the