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Match the theorist with the model.
-Thurstone's Multifactor Approach
Market Risk Premium
The excess return that investors require for choosing to purchase stocks over "risk-free" securities, reflecting the additional risk of equity investments.
Expected Rate Of Return
The expected percentage of gain or loss an investment is projected to generate over a given period of time.
Inflation Rate
The rate at which prices for services and goods are increasing overall, leading to a decrease in buying power.
Expected Return
The anticipated return on an investment, considering both the probability and the impact of different outcomes.
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