HomeDefinitionsCompareDebt Risk factorThe financial definition for Risk factor:In arbitrage pricing theory or the multibeta capital asset pricing model, the set of common factors that impact returns, e.g., market return, interest rates, inflation, or industrial production. 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 Risk factor Click to view definitions beginning ri |