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Explain why hypotheses can be supported,but never proven absolutely true.
Market Risk Premium
The additional return an investor requires from a market portfolio over the risk-free rate, compensating for the risk of the investment.
Financial Leverage
The use of borrowed funds to increase the potential return on an investment.
Shareholder Leverage
The use of borrowed funds by shareholders to increase their potential returns from an investment.
Operating Leverage
A measure of how revenue growth translates into growth in operating income due to fixed costs in a company's business model.
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