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Stock
A kind of financial instrument that indicates possession in a company and symbolizes a right to a portion of the firm's assets and profits.
Beta
A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher than average market volatility.
Risk Premium
The additional return an investor requires for taking on a higher level of risk compared to a risk-free investment.
Risk-Free Rate
The theoretical return on an investment with no risk of financial loss, often represented by government bonds in finance.
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