Define Contracts

question 59

Essay

Define contracts.

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Definitions:

Time Value Of Money

The idea that money in hand now is more valuable than the same amount in the future because of its ability to generate earnings.

Liquidity Bias

A preference or bias for investments that can be quickly converted into cash without significant loss in value.

Arbitrary Cut-Off

A subjective or chosen without any specific standard or rule, end point or threshold.

Market Rate Of Return

The average rate of return anticipated from an investment based on its risk level, historical market performance, and economic conditions.