Meaning MARKET 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. The return also depends on conditions that are unique to the firm. The market model can be graphed as a line fitted to a plot of asset returns against returns on the market portfolio. This relationship is sometimes called the single-index model
More terms such as Market model in Dictionary M.
- Definition MTN:
- Examples Medium-term notes issued by corporations, much like shorter-term commercial paper market model definition.
- Definition Marital Deduction:
- Examples A tax deduction that allow spouses to transfer unlimited amounts of property to one another market model explain.
- Definition Marketed Claims:
- Examples Claims that can be bought and sold in financial markets, such as those of stockholders and bondholders market model what is.
- Definition Marketplace Price Efficiency:
- Examples the prices of assets reflect the available marketplace information. Marketplace price efficiency is sometimes estimated as the difficulty faced by active management of earning a greater return than market model meaning.
- Definition Marketability:
- Examples A negotiable security is said to have good marketability if there is an active secondary market in which it can easily be resold market model abbreviation.
