Answer:
See explanation below
Explanation:
Correlation Coefficient - The degree of the relationship between two variables.
Correlation - The tendency of two variables to move together.
Capital Asset Pricing Model - This represent the return that reflects risk remaining after diversification.
Market Portfolio - A portfolio consisting of all stocks.
Expected Return on a Portfolio - This represents the weighted average of the expected returns on individual components.
Market Risk Premium - The difference between the market rate of return and the risk free rate
Beta - The variable that shows the extent to which a stock’s return moves up or down with the market.
S&P 500 is empirically used to measure Beta