Learning Outcome Statements PDF Download
|1. Arbitrage Pricing Theory|
describe arbitrage pricing theory (APT), including its underlying assumptions and its relation to multifactor models;
define arbitrage opportunity and determine whether an arbitrage opportunity exists;
calculate the expected return on an asset given an asset's factor sensitivities and the factor risk premiums;
|2. Factors and Types of Multifactor Models|
describe and compare macroeconomic factor models, fundamental factor models, and statistical factor models;
|3. Multifactor Models: Selected Applications|
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.
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
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