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Security Market Line
A graphical representation of the expected return on investments as a function of their risk, illustrating the capital asset pricing model.
Market Risk Premium
The extra return investors expect to earn from holding a risky market portfolio instead of risk-free assets.
Diversification
An investment strategy that involves spreading out investments across various financial instruments, industries, and other categories to reduce risk.
Fundamentally Different Industries
are industries that vary greatly in their nature, operations, market dynamics, and regulatory environments.
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