A return-generating model is a model that can provide an estimate of the expected return of a security given certain parameters.
A multi-factor model allows more than one variable to be considered in estimating returns and can be built using different kinds of factors, such as macroeconomic, fundamental, and statistical factors.
Three-Factor and Four-Factor Models
The Single-Index Model
Decomposition of Total Risk for a Single-Index Model
Return-Generating Models: The Market Model
