Investors are willing to forgo current consumption in order to increase future consumption for a nominal rate of interest.
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Q13: The variance of expected returns is equal
Q14: The expected return is the average of
Q15: The risk premium is a function of
Q16: The arithmetic mean is a superior measure
Q17: The holding period return (HPR) is equal
Q19: The rate of exchange between certain future
Q20: The basic trade-off in the investment process
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