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If the output gap equals $50 million,then
Required Rate
The minimum annual percentage return that an investor expects to earn when investing in a particular security or project, factoring in risk.
Risk-Free Rate
The theoretical rate of return of an investment with no risk of financial loss.
Risk Premium
The additional return above the risk-free rate demanded by investors for taking on a certain level of risk.
Business-Specific
Business-specific refers to elements, strategies, or characteristics that are unique or pertinent to a particular company or industry.
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