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Term of the Day
maximum expected return criterion (MERC)
maximum capital gains mutual fund
maximum loan-to-value ratio
Definition
The
principle
that an individual will choose an
asset
that
offers
the highest
expected return
, given that the
available
options
all have the
same
level
of
risk
.
Investors
follow this principle in choosing
securities
.
Managers
follow this principle in choosing
resources
.
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equity
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