What is the meaning of Factor model?

Factor model is a way of decomposing the forces that influence a security's rate of return into common and firm-specific influences.

Barry Goldsmith
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APABarry Goldsmith. (2010). factor model. Retrieved September 21, 2026, from http://smartdefine.org/factor_model/definitions/1153573
ChicagoBarry Goldsmith. 2010. "factor model" http://smartdefine.org/factor_model/definitions/1153573 (accessed September 21, 2026).
HarvardBarry Goldsmith 2010, factor model, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/factor_model/definitions/1153573>.
MLABarry Goldsmith. "factor model" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/factor_model/definitions/1153573>