Examlex
Common types of FFP contracts are: firm fixed price,fixed price with economic price adjustment and fixed price redemption.
Risk-Free Assets
Investments that are considered to carry no risk of financial loss, typically represented by government bonds or treasury bills.
Equity Investments
Investments in stocks or shares, representing ownership in a company or entity and participation in its profits.
Risk Free Rate
The rate of return on an investment with no risk of financial loss, typically represented by the yield on government bonds.
Market Premium
The additional return an investor expects to receive from a market portfolio compared to the risk-free rate.
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