Examlex
Which statement is correct?
Portfolio Weight
The percentage composition of a particular holding in comparison to the total value of the investment portfolio.
Market Risk Premium
The incremental profit expected by an investor when they decide to hold a market portfolio with risk rather than secure, riskless assets.
Risk-Free Rate
The theoretical rate of return of an investment with zero risk, often represented by Treasury bills, serving as a benchmark for assessing the risk and return of other investments.
Good Economy
An economic state characterized by strong growth, low unemployment, and stable prices, reflecting overall health and prosperity.
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