Examlex
Which sentence is better expressed?
Security
A financial instrument representing ownership in a publicly-traded corporation (stock), a creditor relationship with a government or corporation (bond), or rights to ownership as represented by an option.
Rate of Return
The profit or deficit from an investment during a designated time frame, represented as a fraction of the investment's initial value.
Security Market Line
A graphical representation that shows the relationship between the risk of an investment and its expected return, based on the capital asset pricing model.
Expected Return-Beta Relationship
The concept that the expected return of an investment is dependent on its beta, which measures its systemic risk relative to the overall market.
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