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Index Model
A financial model that describes the return of a stock as a function of the return of a market index, plus residual factors unique to that stock.
Standard Deviation
A statistical measure of the dispersion or variability around the mean of a set of data points, often used to quantify the risk of an investment.
Return
The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.
Unanticipated Macroeconomic Events
Economic events that are unexpected and can have significant impacts on markets and investments, such as sudden changes in inflation or interest rates.
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