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question 380

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Distinguish the long-term average returns on equity investments relative to other investments and inflation.

Recognize the concept and significance of diversification in investment portfolios.

Define risk in investment and understand its measurement.

Learn the basics of portfolio theory and its implications on investment decisions.

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Definitions:

French Navy

The maritime arm of the French military, responsible for ensuring the security and defense of France's territorial waters and contributing to international maritime operations.

Parliament

The supreme legislative body in many countries, typically comprising two houses (upper and lower) that are responsible for making laws and overseeing the government.

Virtue

Moral excellence and righteousness; an inclination to do good.

American Society

A diverse and dynamic society consisting of individuals from various racial, ethnic, and cultural backgrounds within the United States.