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Describe the Factors and Organization of the Circumplex Model

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Describe the factors and organization of the circumplex model.


Definitions:

Maturities Matching

Maturities matching is a strategy of coordinating the maturity dates of assets and liabilities to manage risk and liquidity.

Short-Term Financing

A type of corporate financing used to cover immediate financial needs and is typically due for repayment within a year.

ROE

Equity Return, which determines financial success by dividing the net income by the equity of the shareholders.

Short-Term Debt

Debts or loans that are due for repayment within one year.

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