Examlex
Risk-Return Tradeoff
The principle that potential return on investment increases with an increase in risk.
Average Return
The mean amount of profit or loss generated by an investment over a specific period.
Standard Deviation
A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean.
Diversification
An investment strategy aimed at reducing risk by allocating investments among various financial instruments, industries, or other categories.
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