Examlex
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Financial Models
Quantitative tools built to represent the performance of a financial asset or portfolio, often used for forecasting and decision making.
Leveraged Firm
A company that uses borrowed capital or debt to fund its operations and investments, aiming to increase potential returns to shareholders.
Risk-Free Rate
The return on investment with no risk of financial loss, typically represented by the yield on government securities.
Market Risk Premium
The extra return investors demand for choosing to invest in the market over a risk-free asset.
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