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Basic Question 11 of 14
Multi-factor models are useful in ______.
II. active management
I. passive management
II. active management
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I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
explain sources of active risk and interpret tracking risk and the information ratio;
describe uses of multifactor models and interpret the output of analyses based on multifactor models;
describe the potential benefits for investors in considering multiple risk dimensions when modeling asset returns.
CFA® 2025 Level II Curriculum, Volume 5, Module 40.