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In the diagram,where is the olfactory foramina?
Expected Return
The average return an investor anticipates receiving on an investment if it is held for a specific period of time.
Risk Premium
The excess return that an investment is expected to generate above the risk-free rate, compensating investors for taking on a higher level of risk.
Arbitrage
The practice of buying an asset in one market and simultaneously selling it in another market at a higher price, thereby profiting from the temporary difference in prices.
Risk-Free Economic Profits
Refers to theoretical profits that an investor can make without taking any market risk, which in reality is very hard to achieve due to market efficiencies.
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