Examlex
Why does the default risk premium vary over the business cycle?
Market Risk Premium
The excess return that investors require for choosing a risky investment over a risk-free one.
Excess Return
The return on an investment that exceeds the return on a risk-free asset such as a Treasury bond.
Risk-Free Asset
A secure financial asset offering a promised payoff without any chance of losing money, commonly found in the form of government bonds.
Lithium-Base Grease
A type of lubricant made from lithium soap, used for its high resistance to extreme temperatures and water washout.
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