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A Cross of Two Kerry Horses Always Produces Kerry

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A cross of two Kerry horses always produces Kerry.A cross of a Kerry with a Dexter produces 1/2 and 1/2.Crosses of two Dexters produce two Dexters for every Kerry.Explain.


Definitions:

Expected Market Return

The anticipated average rate of return on an investment portfolio or a market index over a certain period, based on historical data and market conditions.

Risk-Free Rate

The return on an investment with no risk of financial loss, often represented by government bonds.

Beta

A measure of a stock's volatility in relation to the overall market; indicates the relative risk of the investment.

Expected Rate of Return

The profit or loss one anticipates on an investment, considering all potential outcomes and their likelihoods.

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