Examlex
Recently the State Fish and Game planted several thousand tagged fish in a local river. The mean length of these fish, which constitute a population, is 12.6 inches. Yesterday, fishermen caught 100 of these tagged fish. You could expect that the mean length for these fish would be 12.6 inches as well since they come from the population.
Single Index Model
A simplified financial model that describes the return of a security as a linear function of the return of a single market index, plus some random noise.
Portfolio
A diverse collection of investments held by an individual or institution, including stocks, bonds, real estate, or other financial assets, designed to reduce risk and achieve specific financial goals.
Beta
A measure of the volatility, or systemic risk, of a security or a portfolio in comparison to the market as a whole.
Beta
A gauge for the level of volatility or systematic risk associated with a security or portfolio against the backdrop of the broader market.
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