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A natural monopoly exists where a single large firm,such as a utility,is more efficient than several small ones.
Unsystematic Risk
is the type of risk that is specific to a particular company or industry, and can be mitigated through diversification.
Systematic Risk
The risk inherent to the entire market or market segment, which cannot be eliminated through diversification.
Stock Returns
The earnings generated by investing in stocks, typically expressed as a percentage of the investment's original value.
Standard Deviation
A measure of the amount of variation or dispersion of a set of values.
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