Examlex
Which of the following is aromatic?
Risk-free Rate
The theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.
Market Risk Premium
The extra return over the risk-free rate that investors require to hold a risky market portfolio.
Beta
A measure of a stock's volatility in relation to the overall market; often used as a gauge of an asset's risk.
Security Market Line
A line that represents the relationship between risk and expected return in financial markets.
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