Explore the multi-factor model, a financial tool utilizing multiple factors to explain market phenomena, asset prices, and portfolio performance.

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 ...

This paper presents a novel, practical approach to risk management for multifactor equity investment strategies. Our approach lies in the construction of a cross-sectional risk model using the stock ...

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.

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 ...