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Risk-Free Asset
An investment with zero default risk, typically government bonds, providing a basis for comparing with riskier assets.
Beta
A method for appraising the degree of variation, or consistent peril, of a security or investment pool versus the market at large.
Expected Return
The anticipated amount of profit or loss an investment is likely to generate over a given period.
Market Return
The total return on investment in the stock market, comprising capital gains and dividends, over a specific period.
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