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A company is reviewing the database of customer purchases over the past 3 years.Using descriptive statistics on this large data set, a business analyst found the following values. From this we can conclude that,
Risk-Free Asset
An investment that is considered to have negligible risk of financial loss, typically government bonds of stable countries.
Capital Allocation Line
A line representing the risk-return trade-off of different portfolios, showing the highest expected return for a given level of risk.
Standard Deviation
A measure of the dispersion or variation in a set of values, indicating how much the values differ from the mean of the set.
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