Two-factor model

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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 ?
Result of two factor model (internet usage and children education) is as follows:
Findings from Terraciano, McCrae, and Costa (2003) showed no differences between the oblique model and the orthogonal two factor model, but when examining the trait vs.
A final model was fit to the data, corresponding to the two factor model with six correlations between indicator residual variances (Table 2).
We compared the fit of the two factor model to that of a single factor model for the same data.
A one or two factor model (1-F, 2-F, henceforth) allows the decomposition of default risk into the estimated factor(s) and the idiosyncratic component.
Standardized Polychoric Residuals for the One and Two Factor model (N = 243) Two Factor Model: Item 1 Item 2 Item 3 Item 4 Item 5 Item 1 -- Item 2 .
htm The confirmatory solution with the two factor model revealed an adjusted goodness-of-fit index of 0.
Second, a two factor model was tested where the items designed to measure work-group support served as the indicators of a latent factor termed perceived work-group support and the items designed to measure organizational support served as the indicators of a latent factor termed perceived organizational support.
TABLE 1 Constrast of the Autoregressive Two Factor Model Autoregressive Two Factor Model Variable [alpha] coefficient [R.
Assessment of the two factor model, on a sample of 452 Canadian adults aged 54 to 70, found slightly less than optimal alpha's for positive affect ([alpha] = .
The figure shows that the long-term model approximates the two factor model for maturities greater than three years.
1981; Riggs, 1981 Steinberg & Sykes, 1985); a psychological or psychodynamic perspective (Glasser 1976; Perry & Sacks, 1981; Sacks, 1979); a more sociological view which emphasizes the importance of socialization (Ewald & Jiobu, 1985) and a two factor model involving both psychobiologic and cognitive-intellectual phenomeno (Sachs & Pargman, 1979a, 1979b, 1979c, 1979d, 1984).