(ii) Explain the procedure of factor construction of q-factors (three key factors) in HXZ's model and also write down the q-factor model. The table below shows pricing errors and tests of overall performance of models including the CAPM, Fama-French three-factor model, the Carhart model, and the q-factor model. Results are presented for a given set of anomalies. Based on the empirical evidence, explain why the q-factor model performs better than alternative models. Table 4 Sionificant anamalios in the hraad crass soction: Prieine ermrs and tests af overall nerfarmance For each anomaly vanable, m,,FF,C, and q are the average retum, the CAPM alpha, the Fama-French alpha, the Carhart alpha, and the q-alpha for the high-minus-low decile, and tm,t,tFF,tC, and tq are their t-statistics adjusted for heteroscedasticity and autoconrelations, respectively. ,FF,C, and q are the average magnitude of the alphas, and p,pFF,PC. and pq are the p-values of the GRS test on the null hypothesis that all of the alphas are jointly zero across the deciles formed on the variable. Table 2 provides a brief description of the symbols. (ii) Explain the procedure of factor construction of q-factors (three key factors) in HXZ's model and also write down the q-factor model. The table below shows pricing errors and tests of overall performance of models including the CAPM, Fama-French three-factor model, the Carhart model, and the q-factor model. Results are presented for a given set of anomalies. Based on the empirical evidence, explain why the q-factor model performs better than alternative models. Table 4 Sionificant anamalios in the hraad crass soction: Prieine ermrs and tests af overall nerfarmance For each anomaly vanable, m,,FF,C, and q are the average retum, the CAPM alpha, the Fama-French alpha, the Carhart alpha, and the q-alpha for the high-minus-low decile, and tm,t,tFF,tC, and tq are their t-statistics adjusted for heteroscedasticity and autoconrelations, respectively. ,FF,C, and q are the average magnitude of the alphas, and p,pFF,PC. and pq are the p-values of the GRS test on the null hypothesis that all of the alphas are jointly zero across the deciles formed on the variable. Table 2 provides a brief description of the symbols