9% = 3% + (FACTOR SENSITIVITY X 5%)

5. - 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

5. B is correct. 9% = 3% + (Factor sensitivity x 5%). Factor sensitivity is therefore 1.2. Section