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Expected Rate of Return
The average return that an investor anticipates to earn on an investment, considering all potential outcomes and their probabilities.
Expected Return
The weighted average of all possible returns for a given investment, considering the probabilities of each outcome.
Standard Deviation
A measure of the dispersion or variability of a set of data points or investment returns, indicating the degree of risk or volatility.
Risk-Free Asset
An investment with a guaranteed return and no risk of financial loss, typically represented by government bonds.
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