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Solve using the multiplication principle.
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Compound Return
The increase in value of an investment due to the earnings on both the principal and the accumulated earnings over previous periods.
Portfolio
A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual, exchange-traded, and closed funds.
Expected Return
The anticipated return on an investment, considering the probabilities of various outcomes.
Downside Risk
The potential loss that could occur in an investment due to adverse price movements.
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