Two Approaches to Defining Factors for Multifactor Models Are to Use

question 90

True/False

Two approaches to defining factors for multifactor models are to use macroeconomic variables or individual characteristics of the securities.

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Definitions:

Profit Center

A segment or branch of a company that is directly responsible for generating profit through its operations and is evaluated on its profitability.

Cost Center

A business unit that incurs costs but does not directly generate revenues, often evaluated for efficiency and cost control.

Cost Center

A division or unit within an organization that does not directly add to profit but still incurs costs, often analyzed for budgeting and cost control.

Profit Center

A branch or division of a company that is directly responsible for generating its own revenue and profits.