Question: Question 4 What are asset pricing models? Give an example of an asset pricing model. Explain how asset pricing models can be used in the

Question 4

What are asset pricing models? Give an example of an asset pricing model. Explain how asset pricing models can be used in the measurement of fund manager performance.

(10 marks)

Question 5

What data would be needed for individual stocks in order to calculate monthly book to market factor returns for 2021? Explain in steps exactly how book to market factor monthly returns might be calculated for 2021.

(10 marks)

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