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Ah Yan Was Able to Describe to Peter in Their

question 6

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Ah Yan was able to describe to Peter in their second session some things which were better since their first meeting, but she had no idea about what she might have done to make those things happen.


Definitions:

Expected Return

The weighted average of all possible returns for an investment, with each return being weighted by its probability of occurrence.

CAPM

The Capital Asset Pricing Model, a theory that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Opportunity Sets

The range of possible investment opportunities available to an investor, given their resources and risk tolerance.

Risk-free Rate of Return

The theoretical rate of return of an investment with zero risk, typically represented by government bonds.

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