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Are managers (agents) opportunistic?
Required Return
The minimum expected return an investor seeks on an investment, considering the risk associated with it.
Contribution Margin
The amount by which sales revenue exceeds variable costs, indicating how much revenue is contributing to fixed costs and profit.
Annual Fixed Costs
The total of all business expenses that are constant and do not change with the level of goods or services produced within a given time period, typically a year.
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