Examlex
Which of the following is a leakage from the circular flow?
Market Risk Premium
The additional return an investor expects to receive from an equity investment over the risk-free rate, as compensation for taking on higher risk.
Risk-Free Rate
The Risk-Free Rate is the theoretical return on an investment with no risk of financial loss, typically associated with government bonds.
Beta
A measure of a stock's volatility in relation to the overall market, indicating its risk compared to the market.
Flotation Costs
Expenses incurred by a company in issuing new securities, including underwriting fees, legal costs, and registration fees.
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