Examlex
Big words are not the best words unless they truly express the idea better than any smaller words.
Risk Premium
The risk premium is the extra return above the risk-free rate that investors demand as compensation for the risk of investing in a particular asset.
Portfolio Beta
A measure of the volatility, or systematic risk, of a portfolio of assets in comparison to the market as a whole.
Unsystematic Risk
Risk associated with a specific company or industry, which can be mitigated through diversification.
Market Risk
The possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets.
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