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If noise exists during a communication,complete understanding will not occur.
Expected Return
The average of all possible returns for an investment, weighted by the probability of each outcome, indicating the potential return over time.
Capital Asset Pricing Model
A theory detailing how systematic risk correlates with the expected return for investments, mainly in the stock market.
Stock Correlation
A statistical measure that describes how the movements of two stocks are related to each other.
Risky Assets
Assets that carry a significant degree of risk of loss, often associated with higher potential returns as compensation for the risk taken.
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