What free cash flow tells you — cash generated after capital expenditures

What the risk-free rate represents — return on a theoretically riskless investment (Treasury bills)

The risk-free rate is the return on investments with minimal risk, like Treasury bills

What Friedman meant by 'There is no such thing as a free lunch'

No lender or government can provide unlimited resources without cost

What reserve requirements do — mandate how much cash banks must hold against deposits

Reserve requirements dictate the percentage of deposits banks must keep as cash reserves

What is the Capital Asset Pricing Model (CAPM) and how does it calculate the expected return on an investment?

CAPM: Expected return = Risk-free rate + Beta * (Market return - Risk-free rate)

What the 50/30/20 budget rule suggests — 50% needs, 30% wants, 20% savings

Allocate 50% income to essentials, 30% to discretionary spending, and 20% to savings

What Buffett means by a company's moat — sustainable competitive advantage

Buffett's "moat" refers to a company's sustainable competitive advantage protecting it from rivals