Examlex
Which of the following often undermines the author's credibility and distracts the reader from the intended written message?
Beta
A measure of the volatility, or systemic risk, of a security or a portfolio in comparison to the market as a whole; it indicates the tendency of a security's returns to respond to swings in the market.
CAPM (Capital Asset Pricing Model)
A model used to determine the expected return on an investment based on its level of risk, as well as the risk-free rate of return and the expected market return.
Risk Premium
The extra return expected by an investor for holding a risky asset compared to a risk-free asset, as compensation for the higher risk.
Diversifiable Risk
A type of risk that can be reduced or eliminated from a portfolio by holding a variety of investments.
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