Two-factor model

Two-factor model

Usually, Fischer Black's zero-beta version of the capital asset pricing model. It may also refer to another type of model whereby expected returns are generated by any two factors.

Two-Factor Model

1. An economic model that states that production is derived from two factors. These factors are the availability of cost of labor and the availability and cost of capital.

2. A form of the capital asset pricing model that does not account for beta. This form of the CAPM was developed by Fischer Black.

3. Any economic model that discusses two factors as predominate or exclusive causes of some event.
References in periodicals archive ?
We saw the need to move to a two-factor model to help better secure the online banking process as well as help our client financial institutions satisfy their needs for additional security to combat identity theft, phishing and online fraud.
ethical leadership, trust in leader, and identification with leader) measured in the follower survey into a single factor, and then I compared this two-factor model (i.
The two-factor model had the SWLS (unidimensional) and PWBS (six-dimensional structure) loading on separate oblique (Model 2) or orthogonal factors (Model 3).
Thus, we sought to verify by means of confirmatory factor analysis, whether the one-factor model was more adequate than the two-factor model.
The alternative CFA models were: (a) a one-factor model that forced all items designed to measure Explorer and Exploiter onto a single factor of Knowledge Strategy Orientation and (b) a two-factor model that forced the Explorer items and the Exploiter items onto separate factors.
A two-factor model ([chi square] [464] = 2165) comprising the work-group support scale and organizational support scale produced an excellent fit (i.
00] and the second for the two-factor model [[chi square](34, N = 290)= 92.
The two-factor model had a Bentler-Bonnett normed fit index of .
1) We employ a simple two-factor model to estimate the exchange-risk sensitivity coefficient of individual firms and industry portfolios.
Model 2 was a two-factor model with narcissism, humility, positivity in leader identity and leadership self-efficacy as one factor, and affective-identity motivation to lead and social-normative motivation to lead as another factor.
Previous research has shown that the PVAQ is a valid and reliable measure and that the two-factor model is the most replicated structure.