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Expected Return
The weighted average of all possible returns for an investment, with the weights being the probabilities of each outcome.
Yield-to-Maturity
The total return anticipated on a bond if it is held until the maturity date, factoring in its current market price, face value, interest rate, and time to maturity.
Cost of Debt
The effective rate that a company pays on its total debt, reflecting the expense of borrowing funds or maintaining outstanding debts.
SML Approach
The Security Market Line approach, a concept in finance that describes the risk vs. return relationship for individual securities, based on the capital asset pricing model (CAPM).
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