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Describe the differences between procedural memories and declarative memories.
Risky Assets
Investments that carry a significant possibility of losing all or part of the initial investment.
Risk-Free Rate
The theoretical rate of return of an investment with zero risk, typically represented by the yield on government bonds.
Optimal Risky Portfolio
A portfolio of investments that maximizes expected return for a given level of risk by carefully selecting and weighting risky assets.
Expected Return
The anticipated amount of profit or loss an investment is likely to generate over a specific period.
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