STANDARDIZED BETAS ARE USED IN FUNDAMENTAL FACTOR MODELS, NOT STATISTICAL FACTOR MODELS

8. - 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

8. B is correct. Standardized betas are used in fundamental factor models, not statistical factor

models. Section 4.3. LO.d.