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Explain the risk-return relationship.
The relationship among risk and required rate of return is known as the risk-return relationship. It is a positive relationship for the reason that the more risk assumed, the higher the necessary rate of return most people will demand.
Risk aversion illustrates the positive risk-return relationship. It describes why risky junk bonds hold a higher market interest rate than essentially risk-free U.S. Treasury bonds.
The issuer's right to call back the issue before the maturity date is referred to as a "call provision". In case of asset-backed securities, the trustee is grante
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HOW TO CALCULATE ASSESSED BANK FINANCE
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