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Interest
The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.
Risk Averse
The preference to avoid uncertainty and potential losses in decision-making, favoring safer options even if they offer lower potential returns.
Portfolio
A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds.
Diversification
A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset or risk.
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