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Identify and Describe the Two Types of Business Plans

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Identify and describe the two types of business plans.


Definitions:

True Beta

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole, adjusted for anomalies.

Expected Rate

The anticipated rate of return on an investment, often based on historical data or forecast models.

Market Expected Rate

A rephrased term for Expected Market Rate, referring to the anticipated average rate of return as forecasted by investors based on market data.

Capital Asset Pricing Model

A model that describes the relationship between risk and expected return and that is used in the pricing of risky securities.

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