Examlex
Evaluate the expression without using a calculator.
Covariance
A measure of the degree to which two variables move in relation to each other, indicating the direction of their relationship.
Expected Return
The anticipated return on an investment, averaging in the probability of different outcomes.
Optimal Risky Portfolio
A portfolio construction that maximizes expected return for a given level of risk, based on modern portfolio theory.
Risk Free Rate
The theoretical return on investment with zero risk of financial loss, often represented by the yield on government bonds from stable governments.
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