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Risk-Free Asset
An investment with a guaranteed return and no chance of default, often used as a benchmark for the risk level of other investments.
Standard Deviation
A statistical measure that quantifies the amount of variability or dispersion of a set of data points or distribution from the mean.
Mean Rate
The average value of a set of rates, which could be interest rates, growth rates, or any other type of change measured over time.
Expected Utility
A theory or calculation that aims at finding the utility expected from an uncertain prospect by considering all possible outcomes, their probabilities, and their respective utilities.
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