Examlex
________ is the tendency to look for details in a present situation that are similar to information previously obtained, leading one to conclusions that are similar to those of the past.
Security Market Line
A line that represents the relationship between risk and expected return in capital market theory, often used in the capital asset pricing model.
Beta
Beta is a measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates that the stock is more volatile than the market, while a beta less than 1 means it is less volatile.
Regression Line
A straight line that best fits the data points in a scatter plot, used in statistics to model the relationship between two variables.
Security Market Line
A graphical representation used in the Capital Asset Pricing Model to show the relationship between expected return and beta (risk) of an investment.
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