Explain the meaning of risk-return
Problem:
Explain the meaning of risk, return, and risk preferences? Why is risk not the chance of taking a loss? Show your all work and explain in detail.
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Suppose that LIBOR rates for maturities of one month, two months, three months, four months, five months and six months are 2.6%, 2.9%, 3.1%, 3.2%, 3.25%, and 3.3% with continuous compounding. What are the forward rates for future one month period
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