Examlex
In the accompanying figure, item 1 points to the ____.
Standard Deviation
A measure of the dispersion or variability in a set of data points, indicating how much the values deviate from the mean.
Risk Averse Investor
An investor who prefers to minimize risks, opting for safer investments with lower returns instead of higher risk ones with potentially higher returns.
Expected Return
The weighted average of all possible returns from an investment, with the weights being the probabilities of each outcome.
Required Return
The minimum expected return by investors for investing in a particular asset, considering its risk profile.
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