Question
The single-factor market model (Ri,t = i + iRM,t + error term) does not fully capture the variation of Ri,t. So, depending on the application,
The single-factor market model (Ri,t = i + iRM,t + error term) does not fully capture the variation of Ri,t. So, depending on the application, we might add additional factors (for example, variation in exchange rates). What are examples of these types of adjustments?
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Financial Modeling
Authors: Simon Benninga
4th Edition
0262027283, 9780262027281
