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Expected Rate of Return
The anticipated return on an investment, calculated as an average probability-weighted return of possible outcomes.
T-Bill
A T-Bill, or Treasury Bill, is a short-term government security issued at a discount from the face value and pays no interest, but is redeemed at its full face value at maturity.
Risky Portfolio
A collection of investments with higher expected returns that comes with a greater level of risk and volatility compared to the overall market.
Standard Deviation
A statistical measure that quantifies the variation or spread of a set of numbers from its average, used to gauge volatility.
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