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Inflation Rate
The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling over time.
Real Rate of Return
The yearly rate of return on an investment, corrected for price changes stemming from inflation or external factors.
Annual Interest Rate
The percentage of the principal that is paid as interest to the lender over the course of one year, not accounting for compounding.
Value at Risk (VaR)
Measure of downside risk. The loss that will be incurred in the event of an extreme adverse price change with some given, typically low, probability.
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