Examlex
Psychology can be considered a collection of many related fields of study. What is one of the features that all of these fields have in common?
Market Risk Premium
The market risk premium is the additional return an investor expects from holding a risky market portfolio instead of risk-free assets.
Risk-Free Rate
The theoretical rate of return on an investment with no risk of financial loss, often represented by government bonds.
Beta
A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher than market volatility, while a beta less than 1 indicates lower.
Required Rate of Return
A rephrasing of Required Return; the minimum annual percentage earned by an investment that will entice an individual or company to invest money.
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