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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
However, studies carried out with the WISC-R on gifted children reached no conclusion, yielding mixed results, ranging from single factor models to multivariate models.
These results were confirmed by Macmann, Mueller-Plasket, Barnett, and Siler (1991), who conducted a principal component factor analysis with 829 children who had total IQ scores of 120 or above, in which the single factor model (composed of Information, Similarities, Vocabulary and Comprehension) was the most consistent solution.
When adjusted for this (Single factor models, Table II) the results were similar, but the place of completion was no longer important.
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