Examlex
Which of the following groups has the lowest life expectancy at birth?
No Arbitrage
A principle stating that it is impossible to achieve risk-free profits from inconsistent or mispriced asset prices in efficient markets, as arbitrage opportunities are quickly exploited and corrected.
Risk Premium
The extra return over the risk-free rate that investors require to compensate them for the risk of holding a risky asset.
Risk Aversion
A person's or entity's reluctance to take risks, preferring lower returns with known risks over higher returns with unknown risks.
Total Risk
The complete range of possible risks, including both systematic and unsystematic risks, that can affect the value of an investment.
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