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A Formal Contract Between Customers and Their Service Providers That

question 18

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A formal contract between customers and their service providers that outlines the specific responsibilities of the service provider and to the customer is called a(n)


Definitions:

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Security Market Line

A line drawn on a graph that shows the relationship between risk and the expected return of the market, used in the capital asset pricing model to determine a security's risk premium.

APT

Arbitrage Pricing Theory, a multifactor model that describes the relationship between a financial asset's returns and its economic factors.

Market Portfolio

A theoretical bundle of investments that includes all types of assets available in the financial market, with each asset weighted according to its market capitalization.

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