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The Three Variables or Relationships That Are Central to Vroom's

question 87

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The three variables or relationships that are central to Vroom's expectancy theory are ________.


Definitions:

Face Amount

The nominal or dollar value printed on a financial instrument, such as a bond or insurance policy.

Specified Rate

A predetermined interest rate detailed in a financial agreement or instrument.

Liquidity Risk Premium

An additional return that investors demand for holding securities with low liquidity, compensating for the cost associated with the inability to quickly sell the asset.

Corporate Bond

A corporate bond is a debt security issued by a corporation to raise funding, which promises to pay back the principal along with interest at a specified maturity date.

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