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Graph the linear function.
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Risky Assets
Assets that carry a significant degree of risk of loss, often associated with higher potential returns as compensation for the risk taken.
Market Risk Premium
The extra return over the risk-free rate that investors require to compensate them for the risk of investing in the stock market.
Risky Investment
An investment that carries a high level of risk of loss, along with the potential for significant returns.
Risk-free Investment
An investment which is thought to have no risk of financial loss, though in reality, such an investment is virtually nonexistent.
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