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Find the absolute maximum value and the absolute minimum value, if any, of the given function.
Systematic Component
The part of an investment’s return or risk that is attributable to broad market factors affecting all investments to some degree.
Single Factor Model
A financial model that describes the return on a security as a function of a single factor, typically the market return, plus security-specific variations.
Risk Premium
The extra return expected by an investor for holding a risky asset instead of a risk-free asset, serving as compensation for bearing additional risk.
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