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Purchasing Power Risk
The risk that the value of money will decrease over time due to inflation, affecting the real value of investments and savings.
Investment Principal
A sum of money invested initially in a financial instrument or vehicle, which serves as the base on which returns or interest is calculated.
Passive Asset Allocation
An investment strategy that aims to build a portfolio mimicking a market index's composition, requiring minimal buying and selling.
Proportions
The quantitative relationship between two amounts, showing the number of times one value contains or is contained within the other.
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