Examlex
If you have a "frightening experience" immediately after hearing a strange sound, your fear may be aroused when you hear that sound again. This best illustrates
Cost of Equity
The return a company requires to decide if an investment meets capital return requirements and can finance its operations.
Risk-Free Rate
The return on an investment with zero risk, typically associated with government bonds.
Market Risk Premium
The Market Risk Premium is the additional return an investor expects from holding a risky market portfolio instead of risk-free assets.
Beta
Beta measures the volatility of an investment relative to the market as a whole, indicating how much an investment's price is likely to move in relation to market changes.
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