Examlex
The textbook defines _____ as a persistent and irrational fear of something, usually a specific object or situation that does not necessarily interfere with the ability to function in daily life.
Unit of Risk
A Unit of Risk quantifies the exposure to potential loss in an investment, typically measuring the volatility or variability of returns over a specified period.
Standard Deviation
A measure of the dispersion or variability of a set of values, indicating how much the values differ from the mean of the set.
Mean/Variance
Framework used in finance to assess portfolios by evaluating their expected returns against their risk, measured by variance or standard deviation.
Sharpe Ratio
A measure that indicates the average return minus the risk-free return, divided by the standard deviation of return on an investment, used to understand the return of an investment compared to its risk.
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