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IDENTIFICATIONS
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Cost of Debt
is the effective rate that a company pays on its total debt, an important component in calculating the cost of capital.
Security Market Line
A graphical representation of the risk-return trade-off for individual securities, illustrating the capital asset pricing model (CAPM).
Risk-free Rate
The yield from an investment that carries no risk of losing money.
Expected Return
Return on a risky asset expected in the future.
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