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If and , find .
Perfect Timing
Perfect timing refers to the ideal moment to buy or sell a security in order to achieve the highest possible gains based on market conditions.
Market Portfolio
A theoretical portfolio of investments that contains all available assets in the market, weighted by market capitalization.
Call Option
The right to buy an asset at a specified exercise price on or before a specified expiration date.
Nonsystematic Variance
The portion of an investment's variance that is attributable to factors specific to its issuer and can be eliminated through diversification.
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