> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fincept.in/llms.txt
> Use this file to discover all available pages before exploring further.

# Factor asset pricing

> Linear factor models of test-asset returns: time-series regressions on traded factors, two-pass cross-sectional regressions (traded or non-traded factors, optional zero-beta rate) and GMM; risk premia with standard errors, betas, pricing errors and the J test of zero alphas.

Toolset `panel_asset_pricing`: 1 tool.

| Tool | What it does | Notes |
| - | - | - |
| `panel_factor_model` | Estimates a linear factor model of test-asset returns: risk premia per factor with standard errors, t and p; each asset's alpha (pricing error) and betas with t statistics; R²; and the J test of the null that all alphas are zero (rejection = the factors do not price the assets). | |

Inputs, limits and outputs are described in [Fincept Panel](/guides/fincept-panel). Full schemas: `fincept_describe_tool`.


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