Examlex
The cost of retained earnings is the cost of issuing new common stock without flotation costs.
Risk-Free Rate
The return on an investment with no risk of financial loss, typically represented by the yield on government Treasury bonds.
Well-Diversified Portfolio
A portfolio spread out over many securities in such a way that the weight in any security is close to zero, resulting in negligible diversifiable risk.
Systematic Risk
The risk inherent to the entire market or market segment, which cannot be eliminated through diversification.
Unsystematic Risk
Unsystematic risk refers to the risk associated with individual investments or sectors, not affected by broader market movements.
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