Examlex
MDMA causes:
Market Risk Premium
The additional return an investor requires for holding a risky market portfolio instead of risk-free assets, reflecting the extra risk.
Required Return
The minimum expected return by investors for investing in a particular asset, considering the risk associated with it.
Beta
It is a measure of a stock's volatility in relation to the overall market, indicating the stock's relative risk.
Risk-free Rate
The return on investment with no risk of financial loss, typically associated with government bonds.
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