Factor model - Definition

A linear factor model relates the return on an Asset (be it a stock, bond, Mutual Fund or something else) to the values of a limited number of factors, with the relationship described by a linear equation. The mathematical profile measuring the extent a portfolio of stocks is influenced by a Range of economic factors such as changes in Interest rates, Inflation, and/or oil prices.

Terms near "Factor model"

Factor portfolio
Factor return
Factor's lien
Factors of production
Factory gate price
Factory Orders
Facultative reinsurance
FAD multiple
Fail position
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There are many factors that affect exchange rates of currencies. However some are more important in currency trading than others. These are; Interest and Inflation rates, Trade balance, Currency market speculation, Foreign investment and Central bank market intervention. Learn how to use these factors in your forex tra ...

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