Examlex
The formula for the intelligence quotient as Stern defined it is:
Market Risk Premium
The additional return expected by investors for holding a risky market portfolio instead of risk-free securities.
Unique Risk
The risk specific to an individual asset, such as a stock, which can be mitigated through diversification.
Individual Security
A financial instrument (such as a stock or bond) representing an individual's ownership or creditor relationship with a corporation or governmental entity.
Market Risk Premium
The excess return that investors require for choosing a risky investment over a risk-free investment.
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