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Slope
In mathematics and economics, the measure of the steepness or incline of a line, often interpreted as the rate of change of one variable with respect to another.
Default Risk
The risk that a borrower will not make the required payments on their debt obligations, leading to potential losses for lenders or investors.
Risk-Free Rate
The theoretical rate of return on an investment with zero risk, often represented by the yield on government securities.
Inflation Premium
The additional amount investors require on the return of an investment to compensate for the loss of purchasing power due to inflation.
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