Match the terms relating to the basic terminology and concepts of risk and rates of return the descriptions of the terms. Read each description carefully and select the correct term. These are not necessarily complete definitions, but there is only one$$possible answer for each term.

DescriptionTermA measure of the extent to which the returns on a given investment are correlated with the returns of a market portfolio.Correlation coefficient $($$)$The name given to the risk that cannot be diversified away by adding additional assets to an investment portfolio since it results from the systematic events and factors that affect all investments.$$A measurement of the tendency of two variables to move together.$$The term applied to the risk of an asset that is measured by the standard deviation of the asset$$s expected returns.$$The practice of creating a portfolio of assets for the purpose of reducing the stand$-$alone risk of the individual assets in the portfolio.$$A model that calculates the required return on an asset as the sum of the market$$s risk$-$free rate and the asset$$s nondiversifiable risk.$$The rate of return expected to be realized from an investment, calculated as the mean of the probability distribution of its possible returns.$$The condition in which the expected return on a security equals its required return, and there is no pressure on its price to change.$$The general term that describes the portion of an asset$$s total expected return that is greater than the return earned on the market$$s risk$-$free rate.$$The potential for variability in the possible outcomes associated with an investment.$$