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Figure 3-23
-Refer to Figure 3-23. The movement from point A to point B on the graph shows
Downside Risk
The potential for loss in value of an investment, measuring how much an investor stands to lose.
Firm Value
The total value of a business, including its equity and debt components, considered in the context of valuation or acquisition.
Hedge
A financial strategy used to reduce or offset the risk of adverse price movements in an asset.
Price Risk
The risk of a change in the market price of securities affecting an investor's portfolio value.
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