Single-factor model

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Single-factor model

A model of security returns that acknowledges only one common factor. The single factor is usually the market return. See: Factor model.

Single-Factor Model

A mathematical calculation of the extent to which one macroeconomic factor affect the securities in a portfolio. Single-factor models attempt to account for contingencies like changes in interest rate or inflation. Usually, however, a single-factor model considers how the market return affects the return on the portfolio. See also: Risk analysis, Factor model.
References in periodicals archive ?
The first model tested was the single factor model, which has been used in the majority of published studies to date (see Schutte et al.
Confirmatory factor analysis results for the 33-item single factor model results were: Normative Fit Index (NFI) = 0.
CFA results for the single factor model were: NFI = 89; NNFI = 90; CFI = .
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