Examlex
-In the given figure,the items marked Box A and Box B are the _____ respectively.
Market Risk Premium
This is the extra return expected by investors for holding a risky market portfolio instead of risk-free assets.
Security Market Line
A line that represents the risk versus expected return of the market; used to assess the performance of investments compared to the market.
Systematic Risk
The inherent risk associated with the overall market or economy that cannot be eliminated through diversification.
Expected Return
The anticipated return on an investment, calculated as the weighted average of all possible returns with the probabilities of their occurrence.
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