Examlex
Step 3 of Triangle Talk is _____.
Risk Premium
The additional return an investor requires for taking on a higher level of risk compared to a risk-free investment.
Risk-Free Rate
The theoretical return on an investment with no risk of financial loss, often represented by government bonds in finance.
Market Rate
The prevailing interest rate available in the marketplace for investments of a similar risk and maturity.
Expected Rate of Return
The anticipated amount of profit or loss that an investment may generate, based on historical data or statistical analysis.
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