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Risk-free Asset
An investment that is expected to return its full original value along with a specified interest rate with virtually no risk of financial loss.
Beta
An evaluation of the unsteadiness, or systematic jeopardy, of a security or collective financial investments when compared to the market as a whole.
CAPM
The Capital Asset Pricing Model, a formula used to determine the theoretical expected return of an investment given its risk relative to the market.
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