Examlex
Which one of the following statements is TRUE?
Beta
An indicator of an investment's relative risk compared to the market, highlighting its sensitivity to market movements.
Systematic Risk
The risk of a portfolio associated with market movements that cannot be eliminated through diversification.
Expected Return
This is the anticipated value or profit that an investment will generate over a certain period, factoring in the probabilities of various outcomes.
Risk-free Rate
The return on investment considered completely free of risk, such as the return on government bonds in stable financial systems.
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