Common factor is an element of return that influences many assets. According to multiple factor risk models, the factors determine correlations between asset returns. Common factors include size (often measured by market capitalization), valuation measures such as price to book value ratio and dividend yield, industries and risk indices.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). common factor. Retrieved September 21, 2026, from http://smartdefine.org/common_factor/definitions/1150296 |
| Chicago | Barry Goldsmith. 2010. "common factor" http://smartdefine.org/common_factor/definitions/1150296 (accessed September 21, 2026). |
| Harvard | Barry Goldsmith 2010, common factor, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/common_factor/definitions/1150296>. |
| MLA | Barry Goldsmith. "common factor" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/common_factor/definitions/1150296> |