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Noble,Inc.purchases each unit of product X for $100 and can sell it in the market for $135.The price of the product for Noble would be $100.
Beta
A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole, where a beta greater than one indicates higher than market volatility and less than one indicates lower.
Security Market Line
The Security Market Line graphically represents the expected return of assets as a function of their systematic, non-diversifiable risk.
Risk-Adjusted Rate
A rate of return that has been adjusted to take into account the risk or volatility of the investment, providing a more accurate measure of its potential reward.
Risk Aversion
A preference to avoid uncertainty, characterized by investors' tendencies to prefer safer investments over more risky ones.
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