Investment

The current commitment of dollars for a period of time in order to derive future payments that will compensate the investor for the time the funds are committed, the expected rate of inflation, and the uncertainty of future payments.

See also...

• Expected Rate of Return
• Holding Period Return (HPR)
• Holding Period Yield (HPY)
• Mean Rates of Return
• Real Risk-free Rate (RFR)
• Risk
• Risk Averse
• Risk Premium (RP)
• Security Market Line (SML)

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