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Describe how power resolves political issues.
Zero-Beta Security
A financial instrument whose returns are not correlated with those of the market, meaning it has a beta of zero, thus not contributing to portfolio volatility.
Expected Return
The probability-weighted average of the possible outcomes.
Risk Premium
The extra return above the risk-free rate that investors require as compensation for the risk of an investment.
Alpha
In investing, alpha is the measure of an investment's return relative to a benchmark index's performance, representing the value that a portfolio manager adds or subtracts from a fund's return.
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