Examlex
All numeric variables are automatically initialized to 0 if no initial value is specified when the variable is declared.
Capital Asset Pricing Model
A model that describes the relationship between systemic risk and expected return for assets, particularly stocks, used to calculate a theoretically appropriate required rate of return for an asset, given its non-diversifiable risk.
Expected Rate
The anticipated return on an investment based on historical averages, interest rates, or economic indicators.
Illiquidity Premiums
Additional return expected by investors for holding assets that are difficult to trade quickly without significant price concessions.
Systematic Risk Factors
Events or conditions that affect all assets to some degree, such as macroeconomic changes, geopolitical incidents, or widespread financial crises.
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