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What Is the Party Principle

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What is the party principle?


Definitions:

Correlation Coefficient

An analytical value assessing the magnitude and pathway of a linear linkage between a pair of variables.

Market Risk

The potential for investment losses stemming from elements that impact the general functioning of the financial markets.

Unique Risk

The risk specific to an individual investment or small group of investments, often reducible through diversification.

Time Horizon

The duration for which an investment is anticipated to be maintained prior to its sale.

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