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What advantage did the Yangzi River drainage area have over the north China plain?
Risk-free Rate
The return on investment of a theoretically risk-less security, often represented by the yield on government bonds.
Risk Premium
The additional return expected by an investor for taking on a higher level of risk, compared to a risk-free investment.
Risky Asset
An investment that holds a significant chance of losing all or part of its value.
Risk-free Asset
An investment option that ensures a definite return and carries no risk of losing money.
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