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
Factoring
Factors of production
Factory gate price
Factory Orders
Facultative reinsurance
FAD multiple
Fail position
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