One-Factor models The one-factor models refer to the return generating process for securities involves a single factor These factors may be one of the followings: The predicted growth rate in GDP The expected return on market index The growth rate of industrial produc tion etcOne-Factor Models • The one-factor models refer to the return￾generating process for securities involves a single factor. These factors may be one of the followings: – The predicted growth rate in GDP – The expected return on market index – The growth rate of industrial produc￾tion, etc