Examlex
How accurate are stereotypes about the effect of gender on verbal communication?
Diversifiable Risk
The risk that a borrower will not pay theinterest and/or principal on a loan as it becomes due. Ifthe issuer defaults, investors receive less than the promised return on the bond. Default risk is influenced byboth the financial strength of the issuer and the terms ofthe bond contract, especially whether collateral has beenpledged to secure the bond. The greater the default risk,the higher the bond’s yield to maturity.
Required Rate
The minimum annual percentage return an investment must earn to be considered a viable option.
Nondiversifiable Risk
A type of investment risk that cannot be mitigated or eliminated through portfolio diversification, often associated with market-wide risks.
Realized Return
The actual gain or loss achieved on an investment over a specific period, taking into account both income and capital gains.
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