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Term Answer Description Risk A. Potential for variability in the possible outcomes associated with an investment. Expected rate of return B. The general term the

Term Answer Description
Risk A. Potential for variability in the possible outcomes associated with an investment.
Expected rate of return

B. The general term the portion of an asset's total expected return that is greater than the return earned on the markets risk-free rate

Market Risk

D. The rate of return expected to be realized from an investment, calculated as the mean of the probability distribution of its possible returns

Coefficient of variation E. This model determines the appropriate required return on a security as the sum of the market risk-free rate
Stand-alone risk F. The result of adding additional assets to a portfolio, when the returns of individual assets are noncorrelated
Risk Premium

G A measure f the extent to which the returns on a given investment are correlated with returns of a market portfolio

Diversification H. Term applied to the risk of asset that is measured by the standard deviation f the assets expected returns
Capital Asset principle model

I the condition of price stability that results from the equality of a security expected and required returns.

Equilibruim J. This statistical value provides a standardized measure of a security's risk per unit of return, and is useful in comparing the expected returns of different investments.

Please match definition with vocabulary

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