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Which approach to reasoning goes "from the particular to the general"?
Standard Deviation
A statistic that measures the dispersion of a dataset relative to its mean and is used in finance to gauge the amount of historical volatility of an investment.
Risk-Free Asset
An investment that is expected to return its principal and interest with near certainty, such as government bonds from stable countries.
Risky Asset
An investment that has a significant degree of uncertainty in its returns.
Asset Allocation
The process of spreading investments among various categories of assets (e.g., stocks, bonds, real estate) to optimize risk and return.
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