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Find y by referring to the graph of the trigonometric function.
Risk-Free Rate
An ideal rate of return on an investment with no risk, typically represented by government bond yields.
Market Risk Premium
The increased return an investor hopes to gain by investing in a risky market portfolio rather than in assets free of risk.
Required Return
The minimum rate of return on an investment necessary to compensate the investor for the level of risk assumed.
Overall Return
The total gain or loss experienced on an investment over a given period, taking into account capital gains, dividends, and interest.
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