Can you identify a factor portfolio for the second factor?
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Can you identify a factor portfolio for the second factor?
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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When we use the actual factor we implicitly assume that investors can perfectly replicate it that is they can invest in a portfolio that is perfectly ...View the full answer
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