Someone who is risk averse has the characteristic or trait of preferring avoiding loss over making a gain.| Corporate Finance Institute
The Rate of Return (ROR) is the gain or loss of an investment over a period of time copmared to the initial cost of the investment expressed as a percentage.| Corporate Finance Institute
The market risk premium is the additional return an investor expects from holding a risky market portfolio instead of risk-free assets.| Corporate Finance Institute
The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between expected return and risk of a security.| Corporate Finance Institute