Index model

Index model

A model of stock returns using a market index such as the S&P 500 to represent common or systematic risk factors.

Single-Index 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 to its portfolio's performance, according to its beta. It is calculated as follows:

Return on security = alpha + beta * return on portfolio + residual return
References in periodicals archive ?
Summary Results of Market Index Model for Value Weighted Portfolios and Equal Weighted Portfolios.
It looks like Minister Hipkins intends to replace the decile system with an equity index model because the Census data the decile system depends on is delayed and unreliable.
"The administration's proposal for an International Pricing Index Model for Part B drugs raises a number of questions, and we need to have a greater understanding of the potential impact of the proposal on patients, physicians, and the health care system," AMA President Barbara McAneny MD, said in a statement.
A key strength of the six-factor prognostic index model is that it is a pragmatic tool for risk stratification using easily available (and inexpensive) clinical parameters.
Different from previous studies, this paper discusses the stability and the complexity of temperature index model under intervene of delay and stochastic factors based on entropy theory and nonlinear dynamics theory.
By simulating Brazilian splitting tests with different disk sizes, the scale effect influence on shale brittleness is studied by combining the comprehensive brittleness index model with the simulation results (Table 7).
The reduced index model proved to yield comparably stable results even with less analytical effort, but the decrease in accuracy needs to be considered (Fig.
A habitat suitability index model for the eastern oyster (Crassostrea virginica), a tool for restoration of the Caloosahalchee Estuary, Florida.
To accomplish this, a Customer Satisfaction Index model for E-Banking, named as CSI-EB model was established with indigenous measurement scales based on qualitative research and literature study.
Many growth model equations had been applied to construct site index model, such as Chapman Richards, Johnson Schumacher and log logistic models.
From the results, the delay index model was formulated.