Examlex
Define risk and return and discuss the relation between them.
Market Rate
The prevailing interest rate available in the marketplace on investments, loans, and deposits.
Expected Rate
Expected Rate often refers to the return that investors anticipate earning on an investment over a certain period.
Risk-Free Rate
The theoretical return on investment with no risk of financial loss, often represented by the yield on government bonds.
Actual Return
The real gain or loss experienced on an investment over a specified period, typically expressed as a percentage.
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