multi factor Flashcards

1
Q

how differ from capm single factor? 3

A

risk premium is level of the security’s systematic risk
relative to the average level of systematic risk on a stock market.

other factors may also determine the return on a security

Different securities have different sensitivities to different types of market-wide shocks:
inflation, business cycles, interest rates,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q
A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly