A multi-factor model uses many factors in its computations to explain market phenomena and/or equilibrium asset prices.

Key Takeaways The Barra Risk Factor Analysis is a multi-factor model that evaluates a security's risk relative to the market using over 40 data metrics.

Reviewed by Thomas Brock Fact checked by Suzanne Kvilhaug CAPM: An Overview Many investors use the capital asset pricing model (CAPM) as a way to estimate the potential return of a stock or other ...

Given the persistence of the positive abnormal returns accruing to common stocks that have low price-earnings ratios, small corporate capitalizations and less institutional ownership, a pricing model ...

The authors propose using a three-factor Merton model to allow more accurate quantification when investigating the credit risk of portfolios.

The MSCI MAC Factor model is an innovation based on decades of experience building factor models and feedback from hundreds of clients representing the industry’s most sophisticated investors.