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From your answers above make an application to the worlds income distribution using John Rawl's terms "veil of ignorance", "economic justice", and "poorest of the poor".
Reward-To-Risk Ratio
A measure used in finance to compare the expected returns of an investment to the amount of risk undertaken to capture these returns.
Risk-Free Rate
The theoretical rate of return of an investment with zero risk of financial loss, often represented by the yield of government bonds from stable governments.
Market Risk Premium
This is the extra return expected by investors for holding a risky market portfolio instead of risk-free assets.
Security Market Line
A line that represents the risk versus expected return of the market; used to assess the performance of investments compared to the market.
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