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Expected return is the anticipated profit or loss from an investment based on the probable rates of return. It is an important concept in setting investment goals and making decisions.

EMH suggests that at any given time, stock prices fully reflect all available information. This theory implies it is impossible to consistently achieve higher returns than the overall market without assuming additional risk.

Credit risk is the risk of loss due to a borrower's failure to make payments on any type of debt. It affects the return of the debt investments like bonds and loan instruments.

Unsystematic risk, or specific risk, is unique to a particular company or industry. This type of risk can be mitigated through diversification in a portfolio.

Inflation risk, also known as purchasing power risk, is the risk that inflation will undermine the performance of an investment by reducing its real value. This is particularly relevant for cash or fixed income investments.

Systematic risk, also known as market risk, affects all securities in the market. It is caused by external factors like economic, geopolitical events or natural disasters and cannot be eliminated through diversification.

Treynor Ratio is similar to the Sharpe Ratio but uses beta (market risk) instead of standard deviation to measure the risk-adjusted return. The formula is: $\text{Treynor Ratio} = \frac{R_p - R_f}{\beta_p}$, where $R_p$ is the expected portfolio return, $R_f$ is the risk-free return, and $\beta_p$ is the portfolio's beta.

Jensen's Alpha is a performance metric that represents the average return on a portfolio or investment above or below that predicted by the CAPM, given the portfolio's or investment's beta and the average market return.

VaR is a statistical technique used to measure the risk of loss on an investment. It estimates how much a set of investments might lose, given normal market conditions, in a set time period such as a day.

Diversification is a risk management technique that mixes a wide variety of investments within a portfolio to reduce risk. The rationale is that a diversified portfolio will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio.

The CAPM is a model that describes the relationship between systematic risk and the expected return for assets. It is often used to estimate the cost of equity using the formula: $E(R_i) = R_f + \beta_i(E(R_m) - R_f)$, where $E(R_i)$ is the expected return on the capital asset, $R_f$ is the risk-free rate, $\beta_i$ is the beta of the investment, and $E(R_m)$ is the expected return of the market.

Standard deviation measures the amount of variation or dispersion in a set of values. In finance, it is commonly used as a measure of the risk associated with an investment's rate of return.

Total return is the full return on an investment over a given time period. It includes all forms of returns including interest, capital gains, dividends, and distributions.

Default risk, a form of credit risk, is the chance that companies or individuals will be unable to make the required payments on their debt obligations. Lenders and investors require higher returns to compensate for this risk.

Risk premium is the potential excess return from an investment when compared to a risk-free asset. It serves as a measure of the extra return expected by investors for taking on additional risk.

Currency risk, or exchange rate risk, pertains to the risk of an investment's value changing due to the changes in currency exchange rates. This is a particular concern for investments that involve international financial transactions.

MPT is a theory on how risk-averse investors can build portfolios to maximize expected return based on a given level of market risk. It emphasizes that risk is an inherent part of higher reward.

Volatility refers to the frequency and magnitude with which an asset's price fluctuates. In finance, greater volatility usually indicates higher risk, and it can impact an investor's portfolio returns.

The risk-return tradeoff is the principle that potential return rises with an increase in risk. Low levels of uncertainty or risk are associated with low potential returns, whereas high levels of uncertainty or risk are associated with high potential returns.

Alpha is a measure of an investment's performance relative to a benchmark index. It represents the excess return of an investment relative to the return of the benchmark index.

A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs). Diversification among different assets can help reduce unsystematic risk.

The Beta coefficient measures the volatility of an investment or portfolio relative to the market as a whole. A beta greater than 1 indicates greater volatility than the overall market, while a beta less than 1 indicates less volatility.

Country risk refers to the uncertainty associated with investing in a particular country, which can include political instability, economic turmoil, and changes in regulatory regimes. This risk influences investors' returns, particularly in foreign investments.

Liquidity risk involves the uncertainty of not being able to quickly convert assets into cash without a significant price discount. High liquidity risk can affect both the risk and the return of an investment.

Return is the gain or loss on an investment over a specified period, usually expressed as a percentage of the investment's initial cost. It's an important measure for investors to assess the performance of their investments.

The Sharpe Ratio is used to understand the return of an investment compared to its risk. The formula is: $\text{Sharpe Ratio} = \frac{R_p - R_f}{\sigma_p}$, where $R_p$ is the expected portfolio return, $R_f$ is the risk-free return, and $\sigma_p$ is the standard deviation or volatility of the portfolio.

TVM is the concept that the value of money is time-dependent; a sum of money in hand today is worth more than the same sum in the future due to its potential earning capacity. This principle is foundational in finance for understanding the relationship between risk and return.

Interest rate risk is the risk that an investment's value will change due to a change in the absolute level of interest rates. This can affect the returns on fixed income securities like bonds.

Political risk is the risk associated with changes in government policy, political instability, or unrest that can negatively impact investment returns, particularly in international markets.