Differentiate

question 51

Multiple Choice

Differentiate .

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Definitions:

Risk-free Return

Risk-free return refers to the theoretical return on investment with zero risk, representing the return on the safest assets.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data points from their mean, commonly used to assess financial risk.

Defined Contribution Plan

A retirement savings plan where the amount contributed is specified, but the benefit received in the future depends on the performance of the investment options chosen.

Risk-free Return

The return on an investment with no risk of financial loss, typically represented by government bonds.