Chapter 17: Portfolio Construction

Factor-Mimicking Portfolios advanced

A factor view becomes tradable only after you specify how to load on the target exposure while neutralizing the risks you do not want to own accidentally.

A factor view becomes tradable only after you specify how to load on the target exposure while neutralizing the risks you do not want to own accidentally.

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References

The Elements of Quantitative Investing
Giuseppe A. Paleologo (2025) — John Wiley & Sons
The Cross-Section of Expected Stock Returns
Eugene F. Fama, Kenneth R. French (1992) — The Journal of Finance
Common risk factors in the returns on stocks and bonds
Eugene F. Fama, Kenneth R. French (1993) — Journal of Financial Economics
A five-factor asset pricing model
Eugene F. Fama, Kenneth R. French — Journal of Financial Economics