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Computers are used purely for scientific purposes.
Stable Equilibrium
A state in which a system, once disturbed, returns to its original condition because the equilibrium is stable.
Expected and Required Returns
The returns that investors anticipate or demand from an investment considering its risk, often guiding investment decisions.
SML
Stands for Security Market Line; it represents the relationship between the expected return of an investment and its risk in the capital asset pricing model (CAPM).
Beta of the Portfolio
An assessment of a portfolio's volatility or inherent risk, relative to the overall market.
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