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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.


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The single-factor model presumes that a single market index is enough to explain the fund's investment strategies.
RESULTS In order to establish the independence of the constructs that were assessed via self-report, a confirmatory factor analysis (CFA) was conducted, wherein a single-factor model (representing the view that only general affect is manifest in the self-report data) was contrasted with a multi-factor model (representing the view that the proposed distinct factors underlie the self-report data).
Third, the measurement model was compared to a single-factor model to determine whether the items were better represented as tapping a single underlying construct.
 
 
 
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