Discover how risk premiums offer higher returns for taking on investment risks, and learn how they are calculated and applied in real-world investing scenarios.| Investopedia
Inflation is a decrease in the purchasing power of money, reflected in a general increase in the prices of goods and services in an economy.| Investopedia
Risk tolerance is the degree of risk that an investor is willing to endure given the volatility in the value of an investment.| Investopedia
The capital asset pricing model (CAPM) helps to calculate investment risk and what return on investment an investor should expect.| Investopedia