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For each historical identification question, define the term and briefly describe its historical significance.
railroads
Expected Total Return
The sum of all anticipated earnings from an investment, including capital gains, interest, and dividends, over a specified period, reflecting its potential profitability.
Optimal R&D
The most efficient level of investment in research and development activities where marginal cost equals marginal benefit.
Expected Rate Of Return
The increase in profit a firm anticipates it will obtain by purchasing capital or engaging in research and development (R&D); expressed as a percentage of the total cost of the investment (or R&D) activity.
Interest-Rate Cost-Of-Funds
The interest expense on borrowings, reflecting the rate at which a company or individual can borrow or lend funds.
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