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While the Brain Automatically and Continuously Seeks Meaningful Patterns in the Confusing

question 658

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While the brain automatically and continuously seeks meaningful patterns in the confusing mass of sensations, it cannot possibly "get it right" all the time, which often leads to


Definitions:

Weights

In finance, it often refers to the ratios or percentages assigned to different components of a portfolio or an index, indicating their relative importance.

Expected Return

The anticipated profit or loss of an investment, calculated by taking the average of possible returns weighted by their probabilities.

Economic Scenarios

Hypothetical projections used in financial planning and economic modelling to understand the potential impacts of various macroeconomic conditions or policy changes.

Probability

A measure of the likelihood of a specific outcome or event occurring, often expressed as a percentage or a ratio.

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