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The hormone testosterone MOST likely has its behavioral effects by:
Risk Tolerance
The degree of variability in investment returns that an investor is willing to withstand.
Risk Aversion
The tendency to prefer certainty over uncertainty, leading to decisions that minimize exposure to risk.
Security Market Line
A graphical representation of the expected return on investments as a function of their risk, illustrating the capital asset pricing model.
Market Risk Premium
The extra return investors expect to earn from holding a risky market portfolio instead of risk-free assets.
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