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Kelsey enjoys making cupcakes as a hobby and occasionally sells them for parties.Kelsey receives $1,000 in revenues from cupcake sales this year and pays $1,300 for supplies.Kelsey takes the standard deduction each year.The net effect of the cupcake activity on Kelsey's taxable income is
Expected Returns
The anticipated amount of profit or loss an investment is projected to generate.
Risk Aversion
A preference for lower-risk options over higher-risk ones, often seen in the behavior of investors seeking safer investments.
Security Market Line
A line that represents the relationship between the risk of an investment and its expected return, helping investors to assess the risk-return ratio.
Slope
The measure of the steepness, incline, or grade of a line, often representing the rate of change in a mathematical context.
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