Examlex
What is a stimulus prompt?
Risk-Return Trade-Off
The principle that potential return on investment increases with the amount of risk undertaken in the investment.
Expected Returns
A projection of the amount of profit or loss an investment is likely to generate, factoring in various probabilities.
Higher-Risk Assets
Refers to investments that carry a greater possibility of losing value but offer a higher potential for financial rewards compared to lower-risk assets.
Derivative Security
A financial security whose value is derived from the value of an underlying asset, such as stocks, bonds, commodities, or currencies.
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