IN MACRO-ECONOMIC MODELS, THE FACTOR IS STATED AS A SURPRISE WHEREAS IN FUNDAMENTAL FACTOR MODELS THE FACTOR IS STATED AS A RETURN

7. - CFA 2018 LEVEL 2 PORTFORLIO QUESTION BANK R48 INTRODUCTION TO MULTIFACTOR MODELS Q BANK
CFA 2018 LEVEL 2 PORTFORLIO QUESTION BANK R48 INTRODUCTION TO MULTIFACTOR MODELS Q BANK

7. C is correct. In macro-economic models, the factor is stated as a surprise whereas in

fundamental factor models the factor is stated as a return. Section 4.3. LO.d.