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Attraction Theory Posits That Proximity, Interpersonal Attractiveness, and Similarity Are

question 45

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Attraction theory posits that proximity, interpersonal attractiveness, and similarity are the main components that draw people together.


Definitions:

Cost of Equity

The return that investors expect for their investment in a company's equity, representing the compensation for the risk taken.

Market Risk Premium

The excess return that investors require from an investment in the stock market over a risk-free rate. This premium compensates investors for taking on the higher risk of investing in stocks.

Risk-Free Rate

The theoretical rate of return on investment with zero risk of financial loss, often represented by government bonds.

Expected Dividend

The dividend payment a shareholder anticipates receiving, based on the company's past dividend history or announcements.

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