Examlex
Risk Premium
The extra return expected by investors for holding a riskier investment over a risk-free asset.
Diversifiable Risk
Is the type of investment risk that can be reduced through diversification of a portfolio, related to specific factors affecting individual companies or sectors.
Market Rewards
The returns or gains that investors expect to earn from their investments in the financial markets.
Non-diversifiable Risks
Risks that affect all investments across the market and cannot be mitigated through diversification.
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