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Research on race and reference groups indicates that
Security Market Line
A line in the capital asset pricing model (CAPM) that depicts the relationship between the expected return of an investment and its risk.
Return and Risk-Free Rate
The difference between the total return on an investment and the risk-free rate of return, indicating the excess compensation for taking on risk.
Beta
An assessment of how much a security fluctuates in comparison to the general market.
Regression Equation
An equation that describes the relationship between a dependent variable and one or more independent variables.
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