NISM 21B Portfolio Managers Exam Notes

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  • Fama-French Model: Adds size, value to beta.
  • Arbitrage Pricing Theory (APT): Uses multiple risk factors.
  • Risk-Free Rate: Typically government bond yield.
  • Beta Calculation: Covariance with market / market variance.
  • SML Application: Evaluates over/under-valued securities.

NISM 21B Portfolio Managers

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