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Expected Rate of Return
The projected percentage return on an investment over a given period, factoring in all known variables.
Beta
A measurement of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.
Capital Market Line
A theoretical line representing the risk versus return of the market of all investable assets, assuming risk-free borrowing and lending rates.
Security Market Line
A representation of the capital asset pricing model which shows the relationship between risk (as measured by beta) and expected return of investments.
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