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Simplify the rational expression. If the rational expression cannot be simplified, so state.
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Required Return
The minimum annual percentage earned by an investment that will entice individuals or companies to put their money into it.
Risk-free Rate
The return on an investment with zero risk; typically represented by the yield on government bonds.
Risk Characteristics
Features that define the vulnerability of an investment's return, including volatility, market risk, and credit risk.
Systematic Risk
The risk inherent to the entire market or market segment, also known as "market risk," which cannot be reduced through diversification.
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