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Basic Question 0 of 11

Which pricing model provides no guidance concerning the determination of the risk premium on factor portfolios?

A. Multifactor APT
B. CAPM
C. SML
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User Contributed Comments 1

User Comment
alyl21 APT don identify risk factors
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

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® 2026 Level II Curriculum, Volume 5, Module 40.