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Chapter 14

Latent Factor Models

Curated summaries of the key literature behind this chapter — the findings, the methods, and how to put them to work.

38 referenced in this chapter 17 further reading

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Empirical cross-sectional asset pricing: a survey
Amit Goyal (2012)
Most claimed statistical findings in cross-sectional return predictability are likely true
Andrew Y. Chen (2024)
Presidential Address: The Scientific Outlook in Financial Economics
Campbell R. Harvey (2017)
The Elements of Quantitative Investing
Giuseppe A. Paleologo (2025)
Presidential Address: Discount Rates
John H. Cochrane (2011)
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