Examlex
Describe how an MRI works.
Cost of Equity
The return that investors expect for investing in a company's equity, representing the compensation for their risk.
SML Approach
Security Market Line approach; a graphical representation of the expected return of investments as a function of their systematic, non-diversifiable risk.
Cost of Capital
The rate of return that a company must earn on its investments to maintain its market value and satisfy its shareholders or debtholders.
Future Inflation
Anticipated increase in the price level of goods and services in the future, affecting purchasing power.
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