Examlex
Which of the following terms implies the least degree of confidence in an economic generalization?
Risk-Free Rate
The interest rate excluding all risk premiums. The risk-free rate consists of the pure rate and an inflation adjustment. It is approximated by the three-month treasury bill rate. Written as kRF.
Real Option
The value of additional decision-making opportunities available to an investor or company once an initial investment has been made.
Financial Results
The summary of a company's financial performance and position, typically reported on a quarterly and annual basis.
Risk-Adjusted Rates
In capital budgeting, a rate used in place of the cost of capital to reflect especially risky projects.
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