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Annual Rate
The annual rate refers to the interest or return on an investment over a one-year period, expressed as a percentage of the investment's initial value.
Speculative Bubble
A situation in financial markets where asset prices are driven by exuberant market behavior, greatly exceeding the asset's intrinsic value.
Fundamental Value
Fundamental value is the intrinsic worth of an asset, determined through financial analysis of its underlying factors including earnings, dividends, and growth prospects.
Risk-Return Tradeoff
The principle that potential return on investment increases with an increase in risk.
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