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A partnership involves partners' contributions of capital,services,or a combination of these.
Security Market Line
The Security Market Line graphically represents the expected return of assets as a function of their systematic, non-diversifiable risk.
Risk-Adjusted Rate
A rate of return that has been adjusted to take into account the risk or volatility of the investment, providing a more accurate measure of its potential reward.
Risk Aversion
A preference to avoid uncertainty, characterized by investors' tendencies to prefer safer investments over more risky ones.
Portfolio Theory
A financial model that describes how to assemble a diversified portfolio to maximize returns and minimize risk based on expected returns and the variance of each asset.
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