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The Dog in Pavlov's Experiment, That Only Salivated When the Original-And

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The dog in Pavlov's experiment, that only salivated when the original-and no other-bell was rung, had shown the ability to


Definitions:

Risk-Free Rate

Refers to the return on investment with no risk of financial loss, often estimated by the yield of government bonds.

Market Portfolio

A theoretical bundle of all available assets in the market, representing the entire stock market and used as a benchmark to assess investment performance.

Efficient Frontier

A concept in modern portfolio theory that represents portfolios offering the highest expected return for a given level of risk or the lowest risk for a given level of expected return.

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