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match the following with the right answers The rate of return expected to be realized from an investment, calculated as the mean of the probability
match the following with the right answers
The rate of return expected to be realized from an investment, calculated as the mean of the probability distribution of its possible returns Expected rate of The term applied to the risk of an asset that is measured by the standard deviation of the asset's expected returns Expected rate of 2 The practice of creating a portfolio of assets for the purpose of reducing the stand-alone risk of the individual assets in the portfolio. Diversification The general term that describes the portion of an asset's total expected return that is greater than the return earned on the market's risk-free rate. Market risk The condition in which the expected return on a security equals its required return, and there is no pressure on its price to change. Equilibrium The potential for variability in the possible outcomes associated with an investment. Risk A measure of the extent to which the returns on a given investment are correlated with the returns of a market portfolio Beta coefficier This model determines the appropriate required return on a security as the sum of the market's risk-free rate and a risk premium based on the market's risk premium and the security's beta coefficient Stand-aloner The value of this ranges from +1.0, denoting that two variables move up and down in perfect synchronization to -10, denoting that two variables move up and down in exactly opposite directions Correlation coeffici That portion of an investment's risk calculated as the difference between its total risk and its firm specific risk Market risk Grade It Now Expected rate of return Beta coefficient Capital Asset Pricing Model Correlation coefficient (p) Diversification Equilibrium Expected rate of return Market risk Risk Risk premium Stand-alone risk Step by Step Solution
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