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Dividend policy takes on greater importance when transaction fees and taxes are lower.
Risk Premium
The additional return expected by an investor for taking on a higher level of risk compared with a risk-free investment.
Utils
A hypothetical unit of measurement used in economics to quantify the amount of utility or satisfaction gained by consuming goods and services.
Outcomes
The results or effects of actions, decisions, or policies, with a broader application beyond purely economic contexts.
Risk Averse
A preference for certainty over uncertainty with regards to outcomes, particularly in the context of financial decisions.
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