Examlex
You purchased a share of stock for $120.One year later you received $1.82 as a dividend and sold the share for $136.What was your holding-period return?
Expected Loss
a calculation used in finance and insurance to estimate the average financial loss or cost associated with an investment or insurance policy over a period.
Adverse Selection
A situation in which one party in a transaction has more information than the other, leading to an imbalance and potentially poor market outcomes, commonly seen in insurance markets.
Insurance
A financial product or agreement that provides compensation for specific losses or damages in return for payments made.
High Risk
Refers to situations or investments that have a high potential for loss or failure.
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