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moment reaction at A in the plane frame below is approximately:
Correlation
A statistical measure that describes the extent to which two variables move in relation to each other, indicating the strength and direction of their relationship.
Optimal Risky Portfolio
An investment portfolio that aims to achieve the highest possible return for a given level of risk.
Capital Market Line
A line used in the Capital Asset Pricing Model to illustrate the rates of return for efficient portfolios subject to the risk (measured by standard deviation) compared to the risk-free rate of return.
Efficient Frontier
Efficient Frontier is a concept in modern portfolio theory that refers to a set of investment portfolios that offer the highest expected return for a given level of risk.
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