Why the intercept is the only return when other Factors are also given?
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please explain Q15 also
In a macroeconomic factor model, the factors are surprises or unexpected or unanticipated events.
Therefore, if everything occurs as expected then the expected return is simply the intercept.
Hope this helps.
In a macroeconomic factor model, the factors are surprises or unexpected or unanticipated events.
Therefore, if everything occurs as expected then the expected return is simply the intercept.
Hope this helps.