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An Increase in a Security's Random Risk Should Lead to an Increase

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An increase in a security's random risk should lead to an increase in its beta value.


Definitions:

Jail Time

The period an individual is required to spend in prison as a consequence of a crime they have been convicted of.

Margin of Error

An estimate of the amount of possible error in the results of a survey or poll, often expressed as a percentage.

Confidence Coefficient

The probability that a confidence interval will contain the true parameter value.

Population Proportion

The portion of members in a population that exhibit a specific characteristic, typically expressed as a fraction or percentage.

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