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Why Have Larger Credit Unions Experienced Greater Profitability Than Smaller

question 15

Essay

Why have larger credit unions experienced greater profitability than smaller credit unions? Do you expect this to continue? Why or why not?


Definitions:

Return

Return refers to the earnings generated and realized on an investment over a particular period of time, expressed as a percentage.

Theoretical Finance

A field of finance that seeks to understand and model the behavior of financial markets through mathematical and statistical methods.

Portfolio Theory

This is an investment theory which proposes how risk-averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk.

Efficient Market

A financial market theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the average market return.

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