Q: what is a "multi-factor model"?
Category: glossary , Asked by: L. Cooley from United States
A: A financial model that employs multiple factors in its computations to explain market phenomena and/or equilibrium asset prices. The multi-factor model can be used to explain either an individual security or a portfolio of securities. It will do this by comparing two or more factors to analyze relationships between variables and the security Visit etorousa.com