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Two small objects are suspended from threads. When the objects are moved close together, they attract one another. Which of the following could produce this result?
Risky Asset
A type of financial instrument or investment that carries a higher degree of risk, potentially leading to greater returns or significant losses.
Risk Free Asset
An investment with a guaranteed return and no risk of financial loss, typically government bonds.
Expected Returns
The anticipated profit or yield from an investment, considering both the risk and the return.
Variance of Returns
A statistical measurement of the dispersion or spread of a set of investment returns, used to understand investment risk.
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