A risk manager wants to assess the risk of a hedge fund The fund is concentrated in a few stocks and is market neutral (in other words, it has zero beta) Under these conditions, is it appropriate to use a one factor market model ...

To conclude I can say that a onefactor model w ...

A risk manager wants to assess the risk of a hedge fund. The fund is concentrated in

Question:

A risk manager wants to assess the risk of a hedge fund. The fund is concentrated in a few and is market-neutral (in other words, it has zero beta). Under these conditions, is it appropriate to use a one- factor market model?
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...