How can multifactor models be used to help investors understand the relative risk exposures in their portfolios

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How can multifactor models be used to help investors understand the relative risk exposures in their portfolios relative to a benchmark portfolio? Support your answer with examples using both macroeconomic and microeconomic approaches to factor identification.

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Investment Analysis and Portfolio Management

ISBN: 978-0538482387

10th Edition

Authors: Frank K. Reilly, Keith C. Brown

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