Examlex
Risk management programs:
Leverage
Utilizing borrowed funds to increase the potential return on investment, which can also amplify the potential for loss.
Interest Payments
Money paid by a borrower to a lender for the use of borrowed funds, typically calculated as a percentage of the principal sum.
Rate of Return
The profit or deficit accrued from an investment during a certain timeframe, depicted as a percentage of the investment's original value.
Nominal Rate
The stated interest rate of a loan or financial product, not adjusted for inflation or other factors that affect the real rate of return.
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