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Risk Premium
The extra return expected by an investor for holding a risky asset compared to a risk-free asset.
Capital Asset Pricing Model
A model used to determine the theoretical expected return of an investment, considering its risk and the time value of money, compared to a risk-free return.
Required Return
The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular security or project.
Current Price
The current price refers to the most recent price at which a security, commodity, or currency was traded in a market.
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