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Briefly describe the expectancy theory developed by Victor Vroom.
Security Returns
The gains or losses from investing in a security, usually expressed as a percentage of the initial investment.
Arbitrage Opportunities
Situations where a financial instrument, or a combination of financial instruments, can be bought and sold simultaneously in different markets to profit from price discrepancies.
Risk-Free Rate
The return on investment with no risk of financial loss, often represented by the yield on government securities.
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