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What Are the Components of the Required Rate of Return

question 15

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What are the components of the required rate of return on a share of stock? Briefly explain each component.


Definitions:

Craft Lines

Specialized fields or areas of craftsmanship where specific traditional skills and knowledge are practiced and passed down.

Risk Society

A society where the management and prevention of risks, particularly those that are man-made, become central to social, political, and economic life.

Technological Determinism

The theory that technology shapes and determines the development of human social structure and cultural values.

Normal Accidents

The concept that in complex systems, accidents are unavoidable and inherent due to the intricate interactions and dependencies of system components.

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