Examlex
What is the primary purpose for asking a hypothetical question in an interview?
Expected Return
The expected profit from an investment, calculated by considering the likelihood of various potential results.
Beta
A measure of a stock's volatility in relation to the overall market; a beta above 1 means the stock is more volatile than the market, while a beta below 1 means it is less volatile.
CAPM
The Capital Asset Pricing Model, a theory used to determine the expected return on investment based on its inherent risk and the cost of capital.
Expected Return
The anticipated profit or loss from an investment based on its potential risks and rewards.
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