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Simplify the algebraic expression.
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Risk Aversion
The preference to avoid uncertainty and potential financial loss.
Holding-period Return
The total return received from holding an asset or portfolio of assets over a period of time, considering both income and capital gains.
Risk Aversion
The behavior exhibited by investors who prefer lower risk investments, often at the expense of sacrificing some potential returns.
Expected Return
The anticipated average return on an investment, factoring in the probabilities of each potential outcome.
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