Examlex
________ occurs when a presentation of facts,information,and explanations leads to understanding.
Risk Premiums
Additional returns expected by investors for taking on higher risk compared to a risk-free asset, to compensate for the increased uncertainty.
Multifactor Model
A financial model that evaluates securities by considering multiple economic and financial factors to explain market phenomena and/or rates of return.
Expected Return
The mean value of the probability distribution of possible returns from an investment or portfolio.
Expected Return-Beta Relationship
A concept in finance that describes the relationship between the risk of an investment and its expected return, based on the beta coefficient.
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