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Financial Risk
The potential for monetary loss in investing or engaging in a business enterprise.
Capital Asset Pricing Model
A model that describes the relationship between systematic risk and expected return for assets, particularly stocks.
M&M Proposition I
Modigliani and Miller Proposition I states that in a world without taxes, bankruptcy costs, and asymmetric information, a firm's value is unaffected by how it is financed, whether by debt or equity.
Law Of One Price
An economic theory that states that in efficient markets, identical goods must have only one price.
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