Summarize Fama and French’s findings from their five-factor model. Compare this new model with the older CAPM and the Fama-French three-factor models.
What are smart beta ETFs? Are they active or passive? How big is the market for smart beta products? What is the business case for offering a multifactor ETF?
Explain the basic smart beta portfolio construction methodology. How is it different from the traditional market capitalization weighing? What is meant by the "top-down" approach versus the "bottom-up" approach in the construction of multifactor indexes?