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Examveda

A model in which behavior of asset returns is measured for set of risk factors and market risk is classified as

A. factorization model

B. Two factor model

C. multifactor model

D. quoted factor model

Answer: Option C

Solution(By Examveda Team)

A model in which behavior of asset returns is measured for set of risk factors and market risk is classified as multifactor model. A multi-factor model is a financial model that employs multiple factors in its calculations to explain market phenomena and/or equilibrium asset prices.

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