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Research on brainstorming in groups demonstrates that
Risk-Free Rate
The theoretical rate of return of an investment with zero risk, typically represented by government bonds.
Market Risk Premium
The additional profit that an investor predicts they will earn from a risky market portfolio as opposed to risk-free financial instruments.
Expected Return
The anticipated average return on an investment, taking into account all potential outcomes and their probabilities.
Probability
The measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.
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