Examlex
Decisions of individuals can most frequently diverge from the __________ model because of information screens.
Betas
A measure of a stock's volatility relative to the overall market; a reflection of its risk compared to the market.
Arbitrage Opportunity
A situation where a trader can make a profit without risk by simultaneously buying and selling the same or equivalent assets in different markets to exploit price differences.
Risk-free Rate
A theoretical return on an investment with zero risk of financial loss, often represented by government bonds.
Alpha
Alpha is a financial metric indicating the performance of an investment relative to a benchmark index, representing the extra value that a portfolio manager adds or subtracts from a fund's return.
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