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At Folger University,Drs.Chase and Sanborn are conducting an experiment on the effects of caffeine on memory.Participants are randomly assigned to a caffeine or a no-caffeine group and their recall of items on a word list is later assessed.Which pair below correctly names and identifies the variables in this experiment?
Required Return
Required return is the minimum expected return by investors for investing in a stock, bond, or another security, considering its risk.
Expected Market Return
The average return anticipated from an investment in the broader market, serving as a benchmark for evaluating investment performance.
Beta
A measure of a stock's volatility in comparison to the market as a whole.
Risk Premium
The additional return required by an investor for tolerating a higher level of risk compared to a safe investment.
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