Examlex
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Portfolio Risk
The risk associated with holding a portfolio of investments, reflecting the potential for loss due to market volatility.
Diversified Away
A strategy to reduce risk by allocating investments among various financial instruments, industries, or other categories to avoid overexposure to any single asset or risk.
Market Risk Premium
The additional yield investors anticipate for maintaining a portfolio of risky securities over safe assets.
Risk-Free Rate
The theoretical rate of return of an investment with zero risk, typically represented by the yield of government bonds.
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