HomeDefinitionsCompareDebt One factor APTThe financial definition for One factor APT:A special case of the arbitrage pricing theory that is derived from the one-factor model by using diversification and arbitrage. It shows that the expected return on any risky asset is a linear function of a single factor. Similar MatchesAmortization factorAmortization factorThe pool factor implied by the scheduled amortization assuming no prepayments. Annuity factorAnnuity factorPresent value of $1 paid for each of t periods. Common factorCommon factorAn element of return that influences many assets. According to multiple factor risk models, the common factors determine correlations between asset returns. Common factors include size (often measured by market capitalization), valuation measures such as price to book value ratio and dividend yield, industries and risk indices. Further SuggestionsConversion factorsDiscount factor Factor analysis Factor portfolio Maturity factoring Net benefit to leverage factor Old line factoring Click to compare definitions of One factor APT Click to view definitions beginning on |