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Risk-Free Portfolio
An investment portfolio consisting of assets that have no risk of financial loss, typically associated with government bonds.
Portfolio Beta
A measure of the volatility, or systematic risk, of a portfolio in comparison to the market as a whole, indicating how sensitive the portfolio is to market movements.
Security Market Line
A line that represents the relationship between the risk of an investment and its expected return, used in capital asset pricing model (CAPM) to determine risk-adjusted returns.
Unsystematic Risk
The risk associated with a specific company or industry, also known as "diversifiable risk" or "idiosyncratic risk."
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