Examlex
Consider the following:
Probability Distribution
A function that represents the likelihood of various outcomes in a random experiment.
Average Portfolio Standard Deviation
A measure of the volatility of all the assets in a portfolio, calculated as the square root of the variance of the portfolio's returns.
Coefficient of Correlation
A numerical metric evaluating the magnitude and orientation of a linear correlation between two variables, with values spanning from -1 to 1.
Capital Allocation Line
A graph showing risk-versus-return profiles of different portfolios, including the risk-free rate and a combination of risky assets, guiding optimal asset allocation.
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