Examlex
Which of the following statements is true?
Volatility
Volatility is a statistical measure of the dispersion of returns for a given security or market index, indicating the degree of variation from the average over a certain period.
CAPM
The Capital Asset Pricing Model is a formula used to determine the expected return on an investment, factoring in its risk compared to the market.
Required Return
The smallest yearly percentage gain from an investment necessary to entice people or corporations to invest in a certain security or endeavor.
Risk Aversion
The tendency of investors to prefer lower risk or safer investments to avoid potential losses.
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