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Factor completely using the grouping method to factor trinomials. If unfactorable, indicate that the polynomial is prime.
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Market Risk Premium
The additional return investors expect to receive from an equity investment over the risk-free rate, compensating for taking on higher risk.
Negative Beta
A measure indicating the inverse relationship between the return of a stock and the return of the overall market.
SML
Security Market Line, a graphical representation of the Capital Asset Pricing Model (CAPM) showing the relationship between the expected return of a security and its risk.
CAPM
Short for Capital Asset Pricing Model, a financial model that describes the relationship between systematic risk and expected return for assets.
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