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Returns from the Overall Market (Or an Individual Stock) Can

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Returns from the overall market (or an individual stock) can be thought of as a combination of three factors: earnings growth, multiple expansion (or contraction), and dividend yield.


Definitions:

Reactive Aggression

A form of aggressive response provoked by frustration, threats, or experienced aggression, typically impulsive and out of immediate anger.

Aggression-Provoking Situations

Circumstances that are likely to trigger aggressive behaviors or responses due to stress, frustration, or perceived threats.

Cognitive Representations

The mental models or maps that individuals construct to understand and interpret their experiences, surroundings, and inner states.

Intellectual Maturity

The development of cognitive abilities to a level where an individual can understand complex concepts, reason logically, and make informed decisions.

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