Examlex
A variable that is thought to be influenced by another variable is known as the:
Market Risk Premium
The additional return an investor expects to receive from holding a risky market portfolio instead of risk-free assets.
SML
Stands for Security Market Line, a graphical representation of the expected return of investments at different levels of systematic, or market, risk.
Beta
An indicator of how much a stock's price is expected to fluctuate, compared to fluctuations in the overall stock market.
Required Rate of Return
The minimum annual percentage return an investor expects to earn from an investment to consider it worthwhile.
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