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Compounds
In the context of finance, compounds refer to the process where interest, dividends, or investment earnings are reinvested to generate additional earnings over time.
Correlation Coefficient
The Correlation Coefficient is a statistical measure that calculates the strength and direction of a linear relationship between two variables.
Nondiversifiable Risk
A type of investment risk that is systematic and affects all companies or investments within an entire market.
Systematic Risk
The inherent risk associated with the entire market or market segment that cannot be eliminated through diversification.
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