Examlex
Two specific forms of individual-based pay-for-performance programs
Risk Premium
The extra return above the risk-free rate that investors require to compensate them for holding a risky asset.
Bearing Risk
The act of accepting potential loss from uncertainty in investment or business operations.
Unexpected Returns
Returns on an investment that exceed what is predicted by models or expected based on historical trends, often caused by unforeseen factors or events.
Expected Returns
The anticipated amount of profit or loss an investor predicts to receive from an investment, taking into account the possibility of fluctuating values.
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