# Efficient-Market vs Factors

*Risk & Portfolio — Finicade finance glossary*

Factor models explain returns by exposure to broad drivers — the market, size, value, momentum — rather than luck. CAPM is the one-factor case; multi-factor models add more knobs.

**Also known as:** multi-factor model, factor model, systematic-factors

**Related terms:** [CAPM (Capital Asset Pricing Model)](https://finicade.com/glossary/capm), [Beta](https://finicade.com/glossary/beta), [Systematic Risk](https://finicade.com/glossary/systematic-risk)

**Taught in:** Quant Quest — Commodity Modelling

Source: https://finicade.com/glossary/multi-factor-models