Examlex
Primary reinforcers are
Market Risk Premium
The extra yield an investor anticipates when they invest in a volatile market portfolio as opposed to assets that are free from risk.
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.
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