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5 Cards in this Set
- Front
- Back
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Real Risk-Free Rate |
Compensation for deferred consumption. Tradeoff |
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Maturity Risk Premium |
Compensates for taking risk in longer-term invesments |
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Default Risk Premium |
Compensates investor for risk of money lent not fully repaid |
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Inflation Premium |
Compensates an investor for loss of purchasing power of money |
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Liquidity Premium |
Compensates investor for cost of converting investment to cash |
