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1. A member of the Fed is considered a Dove if he or she worries more about monetary policys impact on ____________ (inflation risk or

1. A member of the Fed is considered a Dove if he or she worries more about monetary policys impact on ____________ (inflation risk or employment risk) than ____________ (inflation risk or employment risk).

2. What is the difference between an ex-ante and ex-post return?

3. Explain what a Factor is.

4. List 5 common factors and provide a short explanation of 2 of them.

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