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Investment
Allocating resources, usually money, with the expectation of generating an income or profit.
Reward-to-Variability Ratio
A ratio used to evaluate the return of an investment relative to its risk, with a higher ratio indicating a more favorable risk-reward profile.
Risk-free Rate
A presumed income from an investment that is free from any financial risk, typically reflected through government bond yields.
Efficient Frontier
A set of optimal portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return, used in modern portfolio theory.
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