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Question of the Week: Level 3 - Portfolio Management

Successful timing of a portfolio’s exposure to rewarded factors would be a source of:

Question of the Week: Level 3 - Portfolio Management 8 votes

A. alpha.
87% 7 votes
B. alternative beta.
0% 0 votes
C. idiosyncratic risk.
12% 1 vote

Comments

  • MarkMeldrumMarkMeldrum OntarioPosts: 73 Associate
    The correct answer is Option A. 

    With exposures to rewarded factors increasingly accessible via rule-based indexes, simple static exposure to known rewarded factors is no longer widely considered a source of alpha.  However, successfully timing that exposure would be a source of alpha.

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