2025 CFA Level II Exam: Topic 9. Portfolio Management - Learning Module 40. Using Multifactor Models

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	1. Arbitrage Pricing Theory describe arbitrage pricing theory (APT), including its underlying assumptions and its relation to multifactor models; define arbitrage opportunity and determine whether an arbitrage opportunity exists; calculate the expected return on an asset given an asset's factor sensitivities and the factor risk premiums;
	2. Factors and Types of Multifactor Models describe and compare macroeconomic factor models, fundamental factor models, and statistical factor models;
	3. Multifactor Models: Selected Applications 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.

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