Risk factor

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Risk factor

In arbitrage pricing theory or the multibeta capital asset pricing model, the set of common factors that impact returns, e.g., market return, interest rates, inflation, or industrial production.

Risk Factor

In arbitrage pricing theory, any risk, especially a macroeconomic situation, that may affect an asset or investment. Examples of risk factors include inflation and interest rates.
References in periodicals archive ?
So with James' paper as my catalyst, I reviewed the current industry discussion of risk-factor investing.
Changes in self-reported risk-factor status might also be attributable either to an increasing prevalence of risk factors overall or to better detection and awareness of certain risk factors.