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Explain how an attempt by the government to lower inflation could cause unemployment to increase in the short-run.
Real Rate Of Return
The annual percentage gain or loss on an investment, adjusted for inflation, providing a more accurate measure of the purchasing power of the return.
Risk Premium
The risk premium is the additional return an investor requires for choosing a risky investment over a risk-free asset, compensating for the extra risk undertaken.
Arithmetic Average Return
The simple average of a series of returns generated over a period of time.
Variance
A statistical measurement of the dispersion of returns for a given security or market index, indicating volatility.
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