Examlex
Define a scientific theory and provide an example of one.
Specific Risk
The risk associated with a particular company or sector, which can be mitigated through diversification.
Market Risk Premium
Market Risk Premium is the additional return an investor expects from holding a risky market portfolio instead of risk-free assets.
Risk-free Rate of Return
The anticipated profit from a riskless investment, usually tied to government treasuries.
Annualized Rate
A projected rate of return or growth over a period of one year, taking into account the effect of compounding over that period.
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