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Discuss how factor investing may, or may not, be an improvement on the single factor (beta/CAPM)...

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Finance

Discuss how factor investing may, or may not, be an improvementon the single factor (beta/CAPM) approach. Which of the factorsseem most applicable, also, are there some factors that may not beappropriate in today’s market for some reason?

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Factor investing is a strategy that chooses securities on attributes that are associated with higher returns There are two main types of factors that have driven returns of stocks bonds and other factors macroeconomic factors and style factors The former captures broad risks across asset classes while the latter aims    See Answer
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