Examlex
Discuss two key themes relating to the impact of culture on communication.
Risk Premium
The risk premium is the excess return that an investor requires for holding a risky asset over a risk-free asset, compensating for the risk of the investment.
Risk-free Rate
The theoretical rate of return on an investment with zero risk, often represented by government bonds.
Risk Premium
The extra return above the risk-free rate that investors demand for choosing to invest in a riskier asset.
Well-diversified Portfolio
An investment portfolio strategically crafted to include a variety of asset classes in order to minimize risk.
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