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A resident is confused. When communicating with the person, which is incorrect?
Tax Rate
The share of earnings upon which a person or corporation is taxed.
Market Risk Premium
The Market Risk Premium refers to the extra yield an investor anticipates receiving for investing in a volatile market portfolio over risk-free securities.
Risk-Free Rate
The projected earnings rate on a risk-free investment, usually depicted by the interest on government bonds.
Company Beta
A measure of a company's stock volatility in comparison to the overall market volatility.
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