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Beta
Beta is a measure of a stock's volatility in relation to the overall market, indicating the stock's risk level compared to the market average.
Non-diversifiable Risk
A type of risk that is inherent to the entire market or market segment and cannot be eliminated through diversification.
Diversified Investor
An investor who spreads their investment across various assets to minimize risk.
Risk Premium
The additional return an investor demands for taking on a higher risk compared to a risk-free investment.
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