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Portfolio's Sigma
Portfolio's Sigma, often synonymous with standard deviation, quantifies the overall risk or volatility of a portfolio, indicating how its returns can vary from the expected return.
Single Index Model
A financial model that describes the return of a stock as a function of the return of a market index, plus a residual unique to the stock.
Actual Return
The real return an investor receives on an investment, factoring in all gains, losses, dividends, and interest.
Risk-Free Rate
The rate of return on an investment with no risk of financial loss, often represented by the yield on government securities.
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