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Differentiate between an open and a closed system.
Standard Deviation
A statistic that measures the dispersion or variability of a dataset relative to its mean, often used in finance to gauge investment risk.
Risky Asset
An investment that holds a significant chance of losing some or all of its value, offering the potential for higher returns to compensate for higher risk.
Risk-Averse
A characteristic of investors who prefer lower risk investments, opting for certainty and stability in their investment choices.
Variance
A measure of the dispersion of a set of data points around their mean value, representing the average of the squared differences from the mean.
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