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Select the correct term for each of the following descriptions. Descriptions Terms This model determines the appropriate required retum on a securly as the sum

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Select the correct term for each of the following descriptions. Descriptions Terms This model determines the appropriate required retum on a securly 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 cooffident The term applied to the risk of an asset that is measured by the standard deviation of the asset's expected retums. The condition of price stability that results from the equalty of a security's expected and required retums. The general term that describes the portion of an asset's total expected return that is greater than the notum earned on the market's risk-free rate. A measure of the extent to which the returns on a given Investment are correlated with the returns of a market portfolio The result of adding additional assets to a portfolio, when the returns of the individual assets are non- correlated That portion of an investment's risk calculated as the difference between its total risk and its firm- specific risk

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