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Borrow Money
The act of obtaining funds from another party with the promise of repaying the principal amount along with potential interest.
Buy Stocks on Margin
The practice of borrowing money from a broker to purchase stock, using the bought securities as collateral for the loan.
Risk Free Asset
An investment that is expected to return its original value without any loss and with a certain rate of interest; considered to have zero default risk.
Rate of Return
The increase or decrease in the value of an investment during a set time frame, represented as a proportion of the investment's original price.
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