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Multiply. Do not simplify.
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Market Proxy
A benchmark or index that represents the overall movement of the market, used for comparative analysis of an investment's performance.
CAPM
Capital Asset Pricing Model, a formula that describes the relationship between the expected return of an investment and its risk.
Risk-Adjusted Basis
A method of calculating returns or performance that accounts for the level of risk associated with an investment.
Market Proxy
A stock market index or a similar benchmark used to represent the overall movement of the market.
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