Examlex
Identify the three categories of critiques discussed in the text about the viability of the democratic peace theory. What do they entail? Do you agree or disagree with these critiques?
Future Volatility
The degree of variation of trading prices over time, typically measured by the standard deviation of returns, predicting the range of potential movements of an asset's price.
Rates of Return
The gains or losses of an investment over a specified period, expressed as a percentage of the investment's initial cost.
Rational Risk-averse Investor
An investor who prioritizes minimizing risk over achieving potentially higher returns when making investment decisions, acting based on logical analysis.
Well-diversified Portfolio
A Well-diversified Portfolio is an investment strategy that involves spreading investments across various asset classes and sectors to reduce risk while improving potential returns.
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