Index model

Index model

A model of stock returns using a market index such as the S&P 500 to represent common or systematic risk factors.

Single-Index Model

The relationship between a security's performance and the performance of a portfolio containing it. The market model states that the security's performance is related to its portfolio's performance, according to its beta. It is calculated as follows:

Return on security = alpha + beta * return on portfolio + residual return
References in periodicals archive ?
This recognition comes at an opportune time for Hexaware with its positive response from clients, for its innovative platforms like iD2E (Integrated Design to Execution) automation, FAME (Framework for automated mobile testing), Usability Measurement Index model, automated Big data testing, service virtualizations.
Many growth model equations had been applied to construct site index model, such as Chapman Richards, Johnson Schumacher and log logistic models.
A habitat suitability index model for the eastern oyster (Crassostrea virginica), a tool for restoration of the Caloosahatchee Estuary, Florida.
12 months SPI index model designed by National Drought Mitigation Center (NDMC), US was used to investigate the SPI trend on annual basis.
Section VI explores statistical problems of the market index model in empirical studies.
The proposed estimation approach also permits to account for extra market covariance without the need of introducing a new factor into an index model.
This new edition updates the biology of grape powdery mildew and introduces a risk assessment index model for it; specifically relates pesticide handling and application to vineyards; and introduces new sections on laboratory testing and diagnosing problems in the field.
In this paper, we use the techniques in [28], the altitude-dependent model of the ITU-R turbulence structure constant model, to develop a scintillation index model for a Gaussian Schell-model beam on the slant path that is applicable under weak-to-strong fluctuations.
We use an index model and we don't try to pick stocks," Walia says.
Jia et al emphasized that the research first ought to make scientific, systematic evaluation index model.