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Describe how Polya's problem solving principles describe the essence of engineering practice?
Slope of the SML
The gradient of the Security Market Line which reflects the trade-off between risk and return in financial markets.
Standard Deviation
Standard deviation measures the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean.
Risky Asset
An asset that has a significant degree of price volatility due to its sensitivity to market fluctuations.
Risk-free Asset
An investment with a certain rate of return, typically considered to be government bonds or similar vehicles with no risk of financial loss.
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