Market model

Market model

The market model says that the return on a security depends on the return on the market portfolio and the extent of the security's responsiveness as measured by beta. The return also depends on conditions that are unique to the firm. The market model can be graphed as a line fitted to a plot of asset returns against returns on the market portfolio. This relationship is sometimes called the single-index model.

Market 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 its portfolio's performance according to its beta; that is, if a security has a beta of 2, and the portfolio rises 10%, then that particular security generally rises 20%. See also: Markowitz Portfolio Theory.
References in periodicals archive ?
On August 1, at midnight, the Netherlands officially switched to the new Dutch market model (also known as Upstream
today announced the debut of its new 2007 European market model FZ6 Fazer spec2 (with cowling) and FZ6 spec2 (without cowling) at Intermot 2006, the world's leading motorcycle and scooter show, being held from October 11-15 in Cologne, Germany.
The paper offers four financial models, including the "liberal" market model in which people spend their money on whatever they like; the INCP thinks such markets consist of "cultural products intended for mass consumption.
In World on Fire (Doubleday), Amy Chua, professor of law at Yale, diverges from the apostles of globalization, who reaffirm that exporting the free market model will increase peace and prosperity around the world.
It's a centralized agency auction market model, meaning that it tries to attract as many buyers and sellers in a single location to insure that the price discovery is done with the maximum amount of supply and demand in the marketplace.
At the same time, Allvine's long-term stock market model posts a reading of 19.
But he manages to ignore the 1995 economic crisis caused by Mexico's adoption of the free market model, and neglects the loss of hundreds of thousands of jobs in the United States due to NAFTA.
In the future, these relationships are going to depend on whether we come to a more rational market model and to a more common definition of quality.
Consumers are migrating away from PC-based Internet usage and are increasingly using mobile devices as their default gateway to the Internet, according to the latest release of the International Data Corporation (IDC) Worldwide New Media Market Model.
But Weyland argues that not even Venezuela's Hugo Chavez has split from the market model as much as his rhetoric would indicate.
The newest release of the International Data Corporation (IDC) Worldwide New Media Market Model (NMMM) forecasts that the impact of smartphone and, especially, media tablet adoption will be so great that the number of users accessing the Internet through PCs will first stagnate and then slowly decline.