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Capital Allocation Line
A graph showing risk-return trade-offs of different portfolios, with risk measured on the x-axis and expected return on the y-axis, aiming to optimize portfolio allocation.
Standard Deviation
A statistic that measures the dispersion of a dataset relative to its mean, used in finance to measure the volatility of an investment.
Risk-Free Asset
Risk-Free Asset is an investment with no risk of financial loss, often represented by government bonds of stable economies.
Asset Allocation
Allocating a portfolio across broad asset classes such as stocks versus bonds.
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