Examlex
What is the most common form of performance pay used by medium to large Canadian firms?
Risk Premium
The risk premium is the extra return above the risk-free rate that investors require to compensate for the risk of holding a risky asset.
Risk Aversion
The tendency of investors to prefer safer investments over riskier ones, indicating their reluctance to take on investments that carry a higher chance of losing value.
Beta
An indication of how much a stock's price fluctuates compared to the broader market.
Portfolio Returns
The overall gains or losses generated by a portfolio of investments over a specific period, assessing the effectiveness of investment choices.
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