Assignment:
Q1. What’s “fundamental” about fundamental risk models?
Q2. A portfolio’s risk can be calculated directly based on the variances of the stocks it holds and their correlations to each other. Why then would a portfolio manager choose to calculate portfolio risk indirectly through a factor-based risk model?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.