Examlex
Case 10-2
Peter is fixing some code written by another employee. First he is working on understanding the current code.
< head>
< title>HTML and JavaScript< /title>
< style type="text/css">
h1 {color:red}
h2 {color:blue}
h3 {color:purple}
p {color:black}
< /style>
< /head>
-Peter also concludes that the heading with the largest type will be ____.
Security Market Line (SML)
Positively sloped straight line displaying the relationship between expected return and beta.
Arbitrage Pricing Theory (APT)
An equilibrium asset pricing theory that is derived from a factor model by using diversification and arbitrage. It shows that the expected return on any risky asset is a linear combination of various factors.
Arbitrage Pricing Theory (APT)
A financial model that estimates the price of assets based on the relationship between their expected return and macroeconomic factors that influence all assets' returns.
Market Risk Premium
The surplus return an investor aspires to earn by holding onto a market portfolio fraught with risks as compared to safeguarded, risk-free assets.
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