Examlex
The contractual rate of interest is usually stated as a(n)
Risk Free Asset
An investment that is expected to return its original value without any loss and with a certain rate of interest; considered to have zero default risk.
Rate of Return
The increase or decrease in the value of an investment during a set time frame, represented as a proportion of the investment's original price.
Level of Risk
The degree of uncertainty associated with an investment or decision, often regarding the potential for loss.
Optimal Portfolio
An investment strategy that maximizes expected return for a given level of risk through diversification.
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