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An Example of a Theory Based on the Idea of Localization

question 6

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An example of a theory based on the idea of localization of function is:


Definitions:

Covariance

A statistical measure that indicates the extent to which two variables change together.

Variances

Variances measure the dispersion of a set of data points around their mean value, indicating how spread out the data is.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange-traded funds (ETFs).

Expected Return

The weighted average of all possible returns for an investment, taking into account the likelihood of each outcome.

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