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Bond Ratings Range from AAA (The Highest) to D (The

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Bond ratings range from AAA (the highest) to D (the lowest) for Standard & Poor's Corporation.


Definitions:

Portfolio Beta

A measure of the volatility of a portfolio in comparison to the market as a whole.

Risk-Free Asset

An investment with a guaranteed return and no risk of financial loss, typically represented by government bonds.

Expected Return

The average return on an investment calculated by multiplying each possible outcome by its probability and then summing all these values.

Market

A place or mechanism through which buyers and sellers interact to trade goods, services, or financial instruments.

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