CFA CFA Level 3 Question of the Week: Level 3 – Portfolio Management (1)

Question of the Week: Level 3 – Portfolio Management (1)

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    • Avatar of MarkMeldrumMarkMeldrum
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        Successful timing of a portfolio’s exposure to rewarded factors would be a source of:

        • A. alpha.
        • B. alternative beta.
        • C. idiosyncratic risk.
      • Avatar of MarkMeldrumMarkMeldrum
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          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.

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