Single-index model
id:
single-index-model-253-11722557
title:
Single-index model
text:
The single-index model (SIM) is a simple asset pricing model to measure both the risk and the return of a stock. The model has been developed by William Sharpe in 1963 and is commonly used in the finance industry. Mathematically the SIM is expressed as: where: These equations show that the stock return is influenced by the market (beta), has a firm specific expected value (alpha) and firm-specific unexpected component (residual). Each stock's performance is in relation to the performance of a ma
brand slug:
wiki
category slug:
encyclopedia
description:
Economic model
original url:
https://en.wikipedia.org/wiki/Single-index_model
date created:
date modified:
2023-03-12T10:36:21Z
main entity:
{"identifier":"Q1669733","url":"https://www.wikidata.org/entity/Q1669733"}
image:
fields total:
13
integrity:
14