The Advantage of Evaluating a Fund's Alpha Using a Multifactor

question 80

True/False

The advantage of evaluating a fund's alpha using a multifactor approach is that it is designed to control for market style (SMB and HML) and momentum (MOM) risk.

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Definitions:

Self-Esteem

A personal appraisal by an individual of their worth or value.

Old-Fashioned Discrimination

Traditional forms of discrimination that are overt and based on clear biases or stereotypes against certain groups.

Prejudice

A negative attitude toward members of a group.

Discrimination

The unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or sex.