Examlex
Which of the following is true of a corporation?
Arbitrage Opportunity
The chance to buy an asset at a low price in one market and simultaneously sell it at a higher price in another market to profit from the price difference.
Risk-Free Rate
The estimated rate of profit from an investment void of risk, usually showcased by the return on government securities.
Expected Return
The projected average return on an investment, considering all possible outcomes weighted by their respective probabilities.
Risk Premiums
The additional return expected from an investment when compared to a risk-free asset, compensating investors for bearing higher risk.
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