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Risk-free Asset
An investment that is expected to deliver guaranteed returns, with minimal to no risk of financial loss.
Arithmetic Average
The simple mean calculated by dividing the sum of a set of numbers by the quantity of numbers in the set.
Geometric Average
A method of calculating the average rate of return that accounts for compounding, often used for investment portfolios.
Long-term
In finance, refers to investments or loans that mature in more than one year; in general use, refers to a duration extending over a long period.
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