,
, MGT 6203 HOMEWORK 3 - PART 1 QUIZ
(COUNT MODELS) | QUESTIONS AND
ANSWERS | 2026 UPDATE | 100% CORRECT
| WITH COMPLETE SOLUTIONS.
SECTION 1: FACTOR MODELS & INVESTMENT
(Questions 1-10)
Question 1
The "Value" factor belongs to which category of factors?
A) Macroeconomic Factors
B) Statistical Factors
C) Fundamental Factors
D) Technical Factors
Correct Answer: C) Fundamental Factors
Rationale: The Value factor belongs to the class of fundamental factors as it
is based on the Book to Market ratio .
Question 2
In Factor Regression, what does the intercept (alpha) represent?
A) Fund's excess return above the risk free rate
B) Fund manager's performance
C) Quantifies the risk of the fund
D) The traditional market beta
, MGT 6203 HOMEWORK 3 - PART 1 QUIZ
(COUNT MODELS) | QUESTIONS AND
ANSWERS | 2026 UPDATE | 100% CORRECT
| WITH COMPLETE SOLUTIONS.
SECTION 1: FACTOR MODELS & INVESTMENT
(Questions 1-10)
Question 1
The "Value" factor belongs to which category of factors?
A) Macroeconomic Factors
B) Statistical Factors
C) Fundamental Factors
D) Technical Factors
Correct Answer: C) Fundamental Factors
Rationale: The Value factor belongs to the class of fundamental factors as it
is based on the Book to Market ratio .
Question 2
In Factor Regression, what does the intercept (alpha) represent?
A) Fund's excess return above the risk free rate
B) Fund manager's performance
C) Quantifies the risk of the fund
D) The traditional market beta
