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Cost of Capital
The rate of return required by a capital provider, whether debt or equity, to make an investment in a project, asset, or firm.
Risk Premium
The additional return expected by an investor for holding a risky asset instead of a risk-free asset.
Expected Return
The projected average amount of profit or loss an investment is anticipated to generate, based on historical performance or probability analysis.
Risk-Free Rate
Risk-free financial gains, usually signified by government securities' yields.
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