Examlex
Match the equation with the appropriate graph.
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Required Return
The minimum rate of return on an investment that investors expect or require, taking into account the risk level of the investment.
Risk-Free Rate
The theoretical return on investment with no risk of financial loss, typically represented by the yield on government bonds.
Real Risk-Free Rate
The rate of return on a risk-free investment, such as government treasury bills, adjusted for inflation, representing the true earning power of the investment.
Expected Inflation Rate
The predicted average rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.
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