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Portfolio Diversification
Portfolio diversification is an investment strategy that aims to reduce risk by allocating investments among various financial instruments, industries, and other categories.
Security Market Line
A line that represents the relationship between the expected return of a security and its systematic risk, illustrating the risk-return trade-off in the capital asset pricing model (CAPM).
Portfolio Weight
The proportion of a specific asset within an investment portfolio relative to the total asset value of the portfolio.
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