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Basic Question 4 of 14
Factor portfolios are useful for ______.
B. hedging purposes only
C. both speculation and hedging purposes
A. speculation purposes only
B. hedging purposes only
C. both speculation and hedging purposes
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
explain sources of active risk and interpret tracking risk and the information ratio;
describe uses of multifactor models and interpret the output of analyses based on multifactor models;
describe the potential benefits for investors in considering multiple risk dimensions when modeling asset returns.
CFA® 2025 Level II Curriculum, Volume 5, Module 40.