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Relevant Risk
Expected Rate of Return the risk that remains once a stock is in a diversified
the rate of return expected to be realized from an portfolio is its contribution to the portfolios market
investment; the weighted average of the probability risk. It is measured by the extent to which the stock
distribution of possible results moves up or down with the market
Correlation
the tendency of two variables to move together
Correlation Coefficient, p
a measure of the degree of relationship between two
variables