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Good Business Requires Decision Making, Which in Turn Requires the Exercise

question 97

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Good business requires decision making, which in turn requires the exercise of good judgment, both at the individual and corporate level.


Definitions:

Risk-Free Return

The return on an investment with zero risk, typically associated with U.S. Treasury securities.

Treynor's Measure

A performance metric for determining how well an investment compensates the investor for taking a risk, considering the risk-free rate.

Risk-Free Return

The theoretical return on an investment with no risk of financial loss.

Wildcat Fund

A type of investment fund that takes on high-risk investments, hoping for significantly higher-than-average returns.

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