What are two critical assumptions underlying any factor model? Cite hypothetical examples of violations of those assumptions.

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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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Question Posted: Mar 16, 2016 02:52 AM

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What are two critical assumptions underlying any factor model? Cite hypothetical examples of violations of those assumptions.

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Factor model relationships are based on two critical assumptions The first is that the random error ...View the full answer

Fundamentals of Investments

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