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Risk-Free Rate
The expected profit from an investment that carries no risk of losing money, frequently depicted through the interest rate of government bonds.
Market Portfolio
A theoretical bundle of all possible investments in the market, combined in such a way as to maximize the expected return for a given level of risk.
Beta
A measure of a security's volatility in relation to the overall market.
P/E Ratio
The price-to-earnings ratio is a valuation measure comparing the current share price of a company to its per-share earnings.
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