Examlex
When the sample size and sample standard deviation remain the same, a 99 percent confidence interval for a population mean, μ, will be narrower than the 95 percent confidence interval for μ.
Risk-Free Rate
The theoretical rate of return of an investment with zero risk of financial loss, often represented by the yield of government bonds from stable governments.
Market Risk Premium
This is the extra return expected by investors for holding a risky market portfolio instead of risk-free assets.
Security Market Line
A line that represents the risk versus expected return of the market; used to assess the performance of investments compared to the market.
Systematic Risk
The inherent risk associated with the overall market or economy that cannot be eliminated through diversification.
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