- This topic has 1 reply, 1 voice, and was last updated Apr-206:34 pm by
.
-
Posts
-
-
Up9
Successful timing of a portfolio’s exposure to rewarded factors would be a source of:
- A. alpha.
- B. alternative beta.
- C. idiosyncratic risk.
-
Up2
The correct answer is Option A.
With exposures to rewarded factors increasingly accessible via rule-based indexes, simple static exposure to known rewarded factors is no longer widely considered a source of alpha. However, successfully timing that exposure would be a source of alpha.
-
Viewing 1 reply thread
- You must be logged in to reply to this topic.