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The Mohorovicic discontinuity occurs because of a
Risk Premium
The extra return expected by investors for taking on a higher level of risk compared to a risk-free investment.
Market Return
The total return from investing in a market or an index, including dividends, interest, and capital gains.
Risk-Free Rate
The theoretical return on an investment with zero risk, typically associated with government bonds.
Security's Beta
A measure of a stock's volatility in comparison to the overall market; a beta greater than 1 indicates higher volatility than the market, while a beta less than 1 indicates lower volatility.
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