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-John Stuart Mill
Correlation Coefficient
A mathematical metric that evaluates the intensity of the correlation between the movements of two related variables.
Line of Best Fit
A straight line drawn through the center of a group of data points on a scatter plot, showing the direction of a relationship.
Excess Return
The return on an investment over the risk-free rate, indicating the extra amount earned for taking on risk.
Risk-Free Rate
The theoretical return on an investment with zero risk, typically considered as the return on government bonds.
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