The Efficiency of Sample Information Is the Ratio of the Expected

question 38

Short Answer

The efficiency of sample information is the ratio of the expected value of sample information to ________.

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Definitions:

Portfolio

An assortment of monetary assets such as shares, bonds, goods, money, and money equivalents, along with closed-end funds and exchange-traded funds (ETFs).

Risk Premium

The extra return expected by an investor for holding a risky asset compared to a risk-free asset.

Capital Asset Pricing Model

A model used to determine the theoretical expected return of an investment, considering its risk and the time value of money, compared to a risk-free return.

Required Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular security or project.