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Standardized measures should have a Cronbach's α of .80 or higher and should be able to discriminate between high and low levels of the construct of interest. Standardized measures may have cut-off scores.
Real Rate of Return
The annual percentage profit earned on an investment, adjusted for changes in the price level due to inflation or deflation.
Annual Interest Rate
The percentage increase in money per year when it is lent or invested, excluding the effects of compounding.
Rate of Inflation
The percentage increase in prices for goods and services over a period, decreasing the purchasing power of money.
Risk Premium
The additional yield beyond the risk-free rate that investors demand as a reward for taking on the risk associated with an investment.
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