IN A MACROECONOMIC FACTOR MODEL, THE FACTORS USED ARE THE SURPRISES IN ECONOMIC DATA RELATIVE TO EXPECTATIONS

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. B is correct. In a macroeconomic factor model, the factors used are the surprises in economic

data relative to expectations. Section 4.2. LO.d