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Explain how seismic gaps can help in forecasting large earthquakes.
Nominal Rate
The rate of interest before adjustments for inflation, representing the face value of financial products.
Large-company Stocks
Shares that represent ownership in corporations with large market capitalizations.
Risk Premium
The extra return expected by investors for holding a risky asset compared to a risk-free asset, compensating for the additional risk.
Total Return
The complete return on an investment over a specified period, including both capital gains and income received.
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