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

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Select the correct term for each of the following descriptions Terms Descriptions 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 promlum and the security's beta coefficient Beta coefficient The rate of return expected to be realized from an Investment, calculated as the mean of the probability distribution of its possible returns Capital Asset Pricing Model Coefficient of variation Diversification The portion of an asset's total expected return required by Investors as compensation for assuming the additional risks associated with the security, the issuer, and the marketplace Equilibrium Expected rate of retum > A measure of the extent to which the return on a given investment are correlated with the returns of a market portfolio Market risk Risk This statistical value provides a standardized measure of a security's rok per unit of retum, and is useful in comparing the expected returns of different investments Risk premium Stand-alone risk The name given to the risk that cannot be diversfied away by adding additional assets to an investment portfolio since it results from the systematic events and factors that affect al Investments. The condition in which the expected return on a security equals its required return, and there is no pressure on its price to change Grade It Now Save & Continue

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