Single-factor model

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 ?
In contrast, data collected from college students from 41 countries indicated that a single-factor model fit adequately (Vitters0, R0ysamb, & Diener, 2002).
On the basis of these criteria, the single-factor model demonstrated a good fit.
The first one was a single-factor model, frequently used in deviance and delinquency research, namely when a variety scale is used (e.
The AIC for this single-factor model indicates that it is no worse fit of the 1-hour data than the GLM of all explanatory factors.
The single-factor model did not provide an adequate fit to the data, [chi square] fit (860) = 2240.
2001), the single-factor model can be expressed as follows:
The assumption underlying the single-factor model was that the participants' responses are best explained by a single factor.
The single-factor model fit was inconsistent across fit indices, with the CFI = 0.
In Study 1 (N = 171), confirmatory factor analysis revealed good fit to a single-factor model.
The single-factor model presumes that a single market index is enough to explain the fund's investment strategies.
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