Return Generating Model is a model that can provide an estimate of the expected returns for a security, given a certain parametric.
For instance, if systematic risk is the only relevant parameter for return, then the model will estimate the expected return for any asset given the level of systematic risk.
A Multi-Factor Model allows for more than one variable to be considered in estimating returns and can be built using various kinds of factors (i.e. macroeconomic, fundamental, and statistical).
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