One Approach for Using Multifactor Models Is to Use Factors

question 42

Multiple Choice

One approach for using multifactor models is to use factors that capture systematic risk.Which of the following is not a common factor used in this approach?

• A) Unexpected changes in inflation
• B) Consumer confidence
• C) Yield curve shifts
• D) Unexpected changes in real GDP
• E) All of the above are common factors used to measure systematic risk

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