Examlex
Which of the following elements together uniquely identify a LSA? (Select 3 answers)
Market Risk Premium
The extra yield an investor anticipates earning by choosing a volatile market portfolio over secure, risk-free investments.
Required Return
Required return is the minimum gain an investor expects to achieve from an investment, accounting for the risk level compared to the return of a risk-free asset.
Risk-Free Rate
The return on investment with no loss of principal, often represented by the yield on government securities.
Beta
An indicator that determines the systematic risk or volatility of a security or a portfolio relative to the overall market.
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