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The Central Limit Theorem states that the sample mean, , is always equal to the population mean,
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Required Returns
The minimum expected return on an investment, determined by the investor's risk tolerance and the investment's risk level.
Diversifiable Risks
Risks that can be reduced or eliminated through diversification in an investment portfolio.
Beta
A measure of a security's volatility in relation to the overall market; used in the capital asset pricing model to determine the expected return of an asset.
Risk-Free Rate
The rate of return of an investment with no risk of financial loss, typically represented by government bonds.
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