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The Number Exactly and Therefore Is Rational

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The number The number   exactly and therefore is rational. exactly and therefore is rational.


Definitions:

Asset-Specific Risk

The risk associated with holding a particular asset, which can be reduced through diversification.

Security Market Line

A representation of the capital asset pricing model (CAPM), showing the relationship between the expected return of a security and its risk as measured by beta.

Expected Rate

The anticipated return on an investment in future periods based on various assumptions or models.

Beta

A measurement of a stock's volatility in relation to the overall market, indicating its risk compared to the market average.

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