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Responding to those who criticized reason,some philosophers
Systematic Risk
The risk inherent to the entire market or an entire market segment, influenced by factors such as economic, geopolitical, and financial events, which cannot be eliminated through diversification.
Expected Return
The anticipated return on an investment, factoring in the probability of various outcomes.
Security Market Line
A line that represents the relationship between the risk of investing in a security and its expected return, as per the Capital Asset Pricing Model.
Market Risk Premium
The extra yield an investor anticipates when they invest in a volatile market portfolio as opposed to assets that are free from risk.
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