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Determine whether the players have equal probabilities of winning.
-Draw a card from a regular deck. If a face card is drawn, player 1 wins; if a numbered card is drawn, player 2 wins.
Capital Asset Pricing Model
A model used to determine the theoretical rate of return of an asset, considering the asset ’s risk relative to that of the market.
Beta
A measure used in finance to describe the relationship of an investment's returns with those of the market; it indicates the investment's risk compared to the market.
Rate of Return
The increase or decrease in the value of an investment throughout a certain timeframe, represented as a portion of the investment's initial cost.
Risk Premium
The risk premium is the extra return above the risk-free rate that investors demand as compensation for the risk of investing in a particular asset.
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