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Solve the equation.
Rate of Return
The gain or loss of an investment over a specified period, expressed as a percentage of the investment's cost.
Normally Distributed Returns
A pattern in the investment world where the returns of a financial instrument are symmetrically distributed around the mean.
Standard Deviation
A statistical measure that quantifies the amount of variation or dispersion in a set of data points.
Risk-free Asset
An investment that is assumed to have no risk of financial loss, typically represented by government bonds.
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