Examlex
Using microbes to break down or remove toxic wastes in water and soil is called
Risk Premium
The additional return an investor expects to receive for taking on additional risk compared to a risk-free asset.
Multifactor APT
A model that describes the return of a security or portfolio in relation to various risk factors and the expected return on the assets, extending the concepts of the Capital Asset Pricing Model (CAPM).
Expected Return
The average of all possible returns for an investment, weighted by the likelihood of each outcome, representing the mean of the probability distribution of returns.
APT
The Arbitrage Pricing Theory, an asset pricing model that predicts a security's returns using the linear relationship of its expected return with macroeconomic factors.
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