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Macroeconomic Factor
A variable that impacts the economy at a large scale, influencing economic outcomes like growth rates, unemployment, and inflation.
Single-Index Model
The Single-Index Model is a streamlined method to evaluate the return of a security or portfolio understanding its sensitivity to movements in a common market index.
Risk-Free Rate
The theoretical rate of return on an investment with zero risk of financial loss, typically associated with government bonds.
Market Index
A statistical measure that represents the performance of a group of stocks, bonds, or other assets, serving as a benchmark to track financial and economic performance.
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