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Perform the indicated operation and express your answer in simplest form. Please enter your answer as one fraction with the denominator factored completely.
Market Risk Premium
The extra return expected by investors from holding a risky market portfolio instead of risk-free assets.
Security Market Line
A graphical representation used in financial markets to illustrate the relationship between risk and return for individual securities.
Reward-To-Risk Ratio
A measure used in finance to compare the expected returns of an investment to the amount of risk undertaken to capture these returns.
Risk-Free Rate
The theoretical rate of return of an investment with zero risk of financial loss, often represented by the yield of government bonds from stable governments.
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