Examlex
An interlocking directorate occurs when a board of directors includes members of the board of competing corporations.
Probability Distribution
A mathematical function outlining every potential value and associated probabilities a random variable may assume in a specified interval.
Return on Stock
The gain or loss on a stock investment, expressed as a percentage of the investment’s initial cost.
Optimal Risky Portfolio
A portfolio that offers the highest expected return for a given level of risk, according to modern portfolio theory.
Risk Free Rate
The theoretical rate of return on an investment with no risk of financial loss, often represented by government bond yields.
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