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Cost of Equity
The return that investors expect for investing in a company's equity, considered the cost of equity capital.
Security Market Line
A representation in financial models that shows the relationship between the risk of an investment and its expected return.
Dividend Payout Ratio
A metric that measures the portion of a company's earnings paid out to shareholders as dividends.
Market Rate of Return
The average return investors expect to earn from an investment in the general market.
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