Examlex
When asked to recall a list of 25 words, participants are likely to remember only some of them. The words they can recall are likely to include
Cost of Capital
The rate of return required by a capital provider, whether debt or equity, to make an investment in a project, asset, or firm.
Risk Premium
The additional return expected by an investor for holding a risky asset instead of a risk-free asset.
Expected Return
The projected average amount of profit or loss an investment is anticipated to generate, based on historical performance or probability analysis.
Risk-Free Rate
Risk-free financial gains, usually signified by government securities' yields.
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