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An Example of a Natural Resource Is a Mineral Deposit

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An example of a natural resource is a mineral deposit.


Definitions:

Risk Premium

The extra return expected by an investor for holding a risky asset over a risk-free asset.

Expected Rate

An anticipated return or interest rate forecasted for an investment over a specific period.

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks, suggesting that the expected return on an investment is related to its risk level.

Portfolio Variance

A measure of the dispersion of returns of a portfolio from its mean, indicating the level of investment risk.

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