Examlex
Which of the following is NOT a result of diffusion of responsibility?
Maturity Risk Premium (MRP)
Additional return investors demand for holding longer-term securities, compensating for the risk of price fluctuations over time.
Real Risk-free Rate
The theoretical return on an investment with no risk of financial loss, adjusted for inflation.
Inflation Premium
The additional interest that investors require to compensate for the decrease in purchasing power of money due to inflation over time.
Zero Coupon Bonds
Bonds that do not pay interest during their lifetime and are sold at a discount to their face value.
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