Question: please help. all in 1. will upvote Multifactor models seek to improve the performance of the single-index model by modeling the systematic component of firm


please help. all in 1. will upvote
Multifactor models seek to improve the performance of the single-index model by modeling the systematic component of firm returns in greater detail. All of the options are correct. incorporating firm-specific components into the pricing model. None of the options are correct. allowing for multiple economic factors to have differential effects. Capital asset pricing theory asserts that portfolio returns are best explained by specific risk. diversification. systematic risk. reinvestment risk. Multifactor models seek to improve the performance of the single-index model by modeling the systematic component of firm returns in greater detail. All of the options are correct. incorporating firm-specific components into the pricing model. None of the options are correct. allowing for multiple economic factors to have differential effects. Capital asset pricing theory asserts that portfolio returns are best explained by specific risk. diversification. systematic risk. reinvestment risk
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