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Forming a hypothesis is the second step in a scientific investigation. This step is derived from two goals of psychology-description and __________.
Expected Return
The mean of all potential outcomes for an investment, adjusted based on the probability of each scenario occurring.
Standard Deviation
A metric assessing how much a group of data points or investment yields spread out or differ from each other.
Investment Opportunity Set
The range of possible investment options available to an investor, based on their risk tolerance and investment objectives.
Efficient Frontier
A graph representing the set of portfolios that provides the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.
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