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Machine Learning Has Contributed to the Development of a Much

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Machine learning has contributed to the development of a much more in-depth understanding of the human genome as well as practical speech recognition, improved web search results, and self-driving cars.


Definitions:

Unique Risk

Risk that affects a very limited number of assets, often referred to as "unsystematic risk" or "idiosyncratic risk."

Diversifiable Risk

The portion of an investment's risk that can be mitigated or eliminated through portfolio diversification.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables.

Covariance

A measure of how two variables move in relation to each other, used in finance to diversify portfolios and minimize risk.

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