A model in which behavior of asset returns is measured for set of risk factors and market risk is classified as
A
factorization model
B
Two factor model
C
multifactor model
D
quoted factor model
Correct Answer: multifactor model
A model in which behavior of asset returns is measured for set of risk factors and market risk is classified as multifactor model. A multi-factor model is a financial model that employs multiple factors in its calculations to explain market phenomena and/or equilibrium asset prices.