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Factor model

Factor model - Definition A linear factor model relates the return on an Asset (be it a stock, bond, Mutual Fund or something else) to the values of a limited number of factors, with the relationship described by a linear equation. The mathematical profile measuring the extent a

What is Factor model?

Factor model - Definition A linear factor model relates the return on an Asset (be it a stock, bond, Mutual Fund or something else) to the values of a limited number of factors, with the relationship described by a linear equation. The mathematical profile measuring the extent a

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