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Rationalize the denominator and simplify. Assume that all variables represent positive real numbers.
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Beta
A measure of the volatility, or systematic risk, of a security or a portfolio compared to the market as a whole.
Regression Line
A line of best fit through a dataset in statistical analysis, showing the relationship between the independent variable and the dependent variable.
CAPM (Capital Asset Pricing Model)
A model that describes the relationship between systematic risk and expected return for assets, particularly stocks.
Risk-Free Rate
The theoretical return on an investment with no risk of financial loss, typically represented by the yield on government securities.
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