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What is the process of political socialization and why is it so important?
Market Risk Premium
Market Risk Premium is the additional return that an investor expects to receive from holding a risky market portfolio instead of risk-free assets.
Company-specific Risk
A type of risk that affects a specific company or industry, distinguished from market-wide risk.
Risk-free Rate
The theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.
Market Risk Premium
The extra return over the risk-free rate that investors require to hold a risky market portfolio.
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