We can use multifactor models for passive management, active management and in rule-based/algorithmic management For passive management, managers often create …
The inter-temporal rate of substitution represents the trade-off between real consumption today vs real consumption in the future. For a …
The APT is a linear model of expected return that incorporates multiple systematic risk factors, but does not identify what …
For review, the Sharpe ratio (SR) is the excess return per unit of risk. It is unaffected by cash inflows or leverage. …