WHY is it so.. That, In a macroeconomic factor model, the factors are surprises in macroeconomic variables that significantly explain returns. Factor sensitivities are generally specified first in fundamental factor models, whereas factor sensitivities are estimated last in macroeconomic factor models.
SSEI QForum Latest Questions
This is the first para from item set – John Martinez is assessing the performance of the actively managed diversified asset portfolio. The diversified asset portfolio is invested in equities, bonds, and real estate, and allocations to these asset classes and ...
Can anyone explain why the answer is not C. Hui Cheung, a portfolio manager, asks her assistant, Ronald Lam, to review the macroeconomic factor model currently in use and to consider a fundamental factor model as an alternative. The current macroeconomic factor ...
adding leverage to aportfoilio could have twin effects bcz it can increase the return and also a threat to portfolio thus, increase the risk (standard deviation) isn’t it true that the effect is uncertain??
HarshhjainnIntermediate
Can somebody explain why have we added risk free rate? We add average stock return right? For Fundamental model
Why these two statements appear to be contradictory.[in red and yellow]
Abhinav UtkarshIntermediate
Doubt 1 in the explanation to “B”, they have said that “An upward sloping curve would be associated with bond risk premiums that are positively, not negatively, related to the consumption hedging benefits of government bonds.” Long term bonds, which ...