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Factor Return

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Factor Return
The return attributable to a particular common factor. We decompose asset returns into a common factor component, based on the asset's exposures to common factors times the factor returns, and a specific return.

Factor Return
The return a factor receives on its investment. A factor is a company that buys the accounts receivable from another company in exchange for a smaller fee, which is paid up front. If and when the factor eventually receives the total amount accounts receivable, it makes a profit.


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