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Market model

• This relationship is sometimes called the single-index model. The market model says that the return on a security depends on the return on the market portfolio and the extent of the security's responsiveness as measured, by beta. In addition, the return will also depend on conditions that are unique to the firm. Graphically, the market model can be depicted as a line fitted to a plot of asset returns against returns on the market portfolio.

 
 

Follow this link for all the terms related to marketmodel.

 
 Embedded terms in definition
 Asset
Beta
Firm
Index model
Market portfolio
Market
Portfolio
Return
Security
Will
 
 Related Terms
 
Asset pricing model
Auction market
Bank market
Baumol model
Bear market
Binomial option pricing model
Black market
Black option model
Black scholes option model
Black scholes option pricing model
Breadth of a market
Brokered market
Bull market
Bulldog market
Business model eps projection
Buyer's market
Capital asset pricing model
Capital market
Capital market efficiency
Capital market imperfections view
Capital market line
Carrying charge market
Cash market
Common market
Common stock market
Complete capital market
Constant growth dividend valuation gordon model
Constant growth model
Corner a market
Crossed market
Currencies and major foreign market hedge funds
Dealer market
Debt market
Depth of a market
Direct search market
Discounted dividend model
Dividend discount model
Dividend growth model
Dividend valuation model
Domestic market
Efficient capital market
Efficient market
Efficient market hypothesis
Either way market
Equilibrium market price of risk
Equity market
Eurocurrency loan market
Eurocurrency market
Euroequity market
European open market
Excess return on the market portfolio
External market
Factor model
Fair market price
Fast market
Federal funds market
Federal open market committee
Financial market
Fixed income market
Flat market
Foreign banking market
Foreign bond market
Foreign equity market
Foreign market
Foreign market beta
Forward market
Fourth market
Futures market
Garmen kohlhagen option pricing model
Gordon model
Gray market
Ho lee option model
Index and option market
Index model
Inside market
Internal market
Internally efficient market
International equity market
International market
International monetary market
Inverted market
Locked market
Make a market
Mark to market
Marked to market
Market
Market arbitrage
Market book ratio
Market cap or market capitalization
Market capitalization
Market capitalization rate
Market clearing
Market conversion price
Market cycle
Market efficiency hypotheses
Market if touched
Market impact costs
Market maker
Market maker spread
Market on close
Market on opening
Market order
Market overhang
Market portfolio
Market premium convertible securities
Market price of risk
Market prices
Market return
Market risk
Market risk return function
Market sectors
Market segmentation theory or preferred habitat theory
Market stabilization
Market surveillance
Market timer
Market timing
Market timing costs
Market to book ratio
Market value
Market value ratios
Market value weighted index
Market value weights
Marking to market
Matador market
Miller orr model
Money market
Money market center bank
Money market certificates
Money market demand account
Money market fund
Money market hedge
Money market mutual funds
Money market notes
National market
New issues market
Normal market
One sided one way market
One way market
Open market operation
Open market purchase operation
Open market share repurchases
Operationally efficient market
Option adjusted spread model
Otc market
Over the counter market
Over the counter otc market
Perfect capital market
Perfect market view of capital structure
Perfect market view of dividend policy
Pie model of capital structure
Primary market
Ratio of exchange in market price
Real market
Rembrandt market
Samurai market
Secondary market
Security market line
Security market plane
Seller's market
Side of the market
Simple linear trend model
Single factor model
Single index model
Specific issues market
Spot market
Stock market
Technical condition of a market
Thin market
Third market
Tight market
Two factor model
Two sided market
Two state option pricing model
Two way market
Underlying market price
Upstairs market
Value at risk model
Variable growth model
Yankee market
Zero growth model

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