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Required Rate Of Return
The required rate of return is the minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.
Market Risk Premium
The extra yield an investor anticipates earning by choosing a volatile market portfolio over secure, risk-free investments.
Required Return
Required return is the minimum gain an investor expects to achieve from an investment, accounting for the risk level compared to the return of a risk-free asset.
Risk-Free Rate
The return on investment with no loss of principal, often represented by the yield on government securities.
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