Examlex
You must decide how to classify a newly discovered organism, but you have only limited test materials to help you make your decision. Chemical A glows if a nuclear envelope is present. Chemical B turns blue in the presence of chloroplasts. Chemical C fizzes when mixed with chitin. After testing the organism, you find out that it glows, doesnʹt turn blue, and fizzes. You classify this organism as a
Security Market Line
A line that represents the relationship between the expected return of a security and its systemic risk, illustrating the risk-return tradeoff in the capital asset pricing model.
Expected Return
The average of all possible returns for an investment, weighted by the probability of each outcome, indicating the potential return over time.
Capital Asset Pricing Model
A theory detailing how systematic risk correlates with the expected return for investments, mainly in the stock market.
Stock Correlation
A statistical measure that describes how the movements of two stocks are related to each other.
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