Factor theory
id:
factor-theory-233-3599073
title:
Factor theory
text:
In finance, factor theory is a collection of related mathematical models that explain asset returns as driven by distinct economic risks called factors. In less formal usage, a factor is simply an attribute or collection of related attributes that explain an asset's returns. The original factor model is the capital asset pricing model (CAPM), which predicts that an asset's expected return in excess of the risk-free rate is wholly determined by its exposure to the market factor. More formally, an
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wiki
category slug:
encyclopedia
description:
original url:
https://en.wikipedia.org/wiki/Factor_theory
date created:
date modified:
2020-05-31T23:01:53Z
main entity:
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image:
fields total:
13
integrity:
13