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Frictional cost

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Frictional cost
The difference between an index fund return and the index it represents. The typically lower rate of return from the fund results from transactions costs.


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Frictional costs of moving money to and from the subsidiary.
As a workers' comp insurer, you may be providing essential services to your customers, but you do so at a frictional cost to these customers.
In particular, the doctrine ignores the frictional costs of people losing their jobs and being forced to change their livelihoods.
 
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