Examlex
A table design is in third normal form (3NF)if it is in 2NF and if all nonkey fields are dependent on one another.
Unique Risk
Another term for diversifiable risk, emphasizing the idea that this risk is specific to an individual investment and not the market as a whole.
Systematic Risk
The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.
Capital Allocation Line
A line on a graph that shows the rates of return of portfolios that optimally combine risk and return for an investor.
Risk-averse Investors
Individuals who prefer lower returns with known risks rather than higher returns with unknown risks.
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