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 ?
KEY WORDS: lobster, habitat, suitability index, habitat suitability index model, Homarus americanus, Long Island Sound
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.
We also need to estimate the interest rate model parameters at and [sigma]t and the stock market index model parameters [[sigma].
Threats are ranked using a risk ranking index model developed specifically for SHRIMP.
However, the Fire Severity Index model predicts the severity, or exceptionality of a fire should it occur.
Development of a habitat suitability index model for burrowing owls in the eastern Canadian prairies.
To obtain an unconditional risk-adjusted measure we use the single index model, which regresses portfolio excess returns on a benchmark portfolio excess returns, usually a market index.
A validity test of a habitat suitability index model for clapper rail.
Risk and strategic issues are analysed with the aid of the project risk profile model (PRP) and strategic index model (SI) respectively.
Utilizing the same "micro-pitch" technology that permits squeezing 60 cavities into the 400-ton Index system, Husky can now raise the capacity of its 250-ton Index model from 48 to 60 cavities for 0.
This citation index model has been exploited by IBM researchers with their engine known as Clever (www.
In "A Dynamic Index Model for Large Cross Sections" Danny Quah and Thomas J.