Caia level ii - Study guides, Class notes & Summaries

CAIA Level II

CAIA Level II Exam

CAIA LEVEL II EXAM QUESTIONS WITH COMPLETE SOLUTIONS

CAIA Level II Exam Questions and Answers

CAIA LEVEL II EXAM GUIDE QUESTIONS WITH CORRECT ANSWERS

CAIA Level II Exam Questions and Answers 100% Verified What advantage do multi-factor models have over single-factor models, such as the Capital Asset Pricing Model? - answerMulti-factor models tend to explain systematic returns much better than do single-factor models. By doing so, multi-factor models are generally believed to produce better estimates of idiosyncratic returns. List the three major categories of factors that drive asset returns. - answerMacroeconomic factors, fundamental/...

CAIA LEVEL II EXAM SET QUESTIONS WITH COMPLETE SOLUTIONS

CAIA Level II Exam Questions and Answers 100% Verified What advantage do multi-factor models have over single-factor models, such as the Capital Asset Pricing Model? - answerMulti-factor models tend to explain systematic returns much better than do single-factor models. By doing so, multi-factor models are generally believed to produce better estimates of idiosyncratic returns. List the three major categories of factors that drive asset returns. - answerMacroeconomic factors, fundamental/...

Intuition of the Black-Derman-Toy interest rate model - ANSWER-Observed spot rates drive rate levels while implied rate volatilities drive rate spreads Understanding the intuition of imposing these two conditions helps in understanding the essence of the BDT model. The spot rates in the currently observed term structure drive the overall levels of the rates that are projected throughout the binomial tree. The implied volatilities of options trading on short‐term rates (i.e., interest rate c...

CAIA Level II Exam Questions and Answers 100% Verified What advantage do multi-factor models have over single-factor models, such as the Capital Asset Pricing Model? - answerMulti-factor models tend to explain systematic returns much better than do single-factor models. By doing so, multi-factor models are generally believed to produce better estimates of idiosyncratic returns. List the three major categories of factors that drive asset returns. - answerMacroeconomic factors, fundamental/...