Examlex
Remembering who we told what is known as
Security Market Line
A graphical representation of the expected return of investments at different levels of risk, based on the Capital Asset Pricing Model (CAPM).
Market Risk Premium
The excess return that investors require for choosing a risky investment over a risk-free one.
Excess Return
The return on an investment that exceeds the return on a risk-free asset such as a Treasury bond.
Risk-Free Asset
A secure financial asset offering a promised payoff without any chance of losing money, commonly found in the form of government bonds.
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