Examlex
Which of the following statements is true?
CAPM
Capital Asset Pricing Model; a formula used to determine the expected return on an investment, factoring in its risk relative to the market.
Risk-to-reward Ratio
A measure used by investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns.
Constant
A fixed value that does not change in mathematical equations or in the context of specific calculations.
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