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Market Risk Premium
The extra yield an investor anticipates by keeping a risky market portfolio over risk-free securities.
Beta
An indicator of how much the risk or instability of a security or portfolio deviates from the broader market.
Standard Deviation
A statistical measure of the dispersion of a set of data points from their mean, widely used in finance to quantify the variability of returns.
Required Return
The minimum expected return an investor demands for investing in a particular asset, considering the risk involved.
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